Inflation creeps up AGAIN to 40-year high of 9.1 PER CENT putting more pressure on families as ministers plead for wage restraint – with fears it will top 11 per cent by the end of the year
The brutal squeeze on families was underlined today after inflation crept up again.
The headline CPI rate increased from an annual rate of 9 per cent in April to 9.1 per cent in May – a 40-year high.
Petrol and diesel prices went up at the fastest rate since records began in 1989, at 32.8 per cent.
The official figures will heap pressure on the Bank of England to cool the rises by hiking interest rates again.
It has predicted that inflation will top 11 per cent by the end of the year, as the Ukraine crisis drives up energy costs and the economy stalls.
Chancellor Rishi Sunak said the authorities are ‘using all the tools at our disposal to bring inflation down and combat rising prices’.
The headline CPI rate increased from an annual rate of 9 per cent in April to 9.1 per cent in May – a 40-year high
Ministers have been pleading for wage restraint to avoid a spiral developing that could plunge the country deeper into trouble.
Mr Sunak said: ‘I know that people are worried about the rising cost of living, which is why we have taken targeted action to help families, getting £1,200 to the eight million most vulnerable households.
‘We are using all the tools at our disposal to bring inflation down and combat rising prices – we can build a stronger economy through independent monetary policy, responsible fiscal policy which doesn’t add to inflationary pressures, and by boosting our long-term productivity and growth.’
ONS Chief Economist Grant Fitzner said: ‘Though still at historically high levels, the annual inflation rate was little changed in May.
‘Continued steep food price rises and record high petrol prices were offset by clothing costs rising by less than this time last year and a drop in often fluctuating computer games prices.
‘The price of goods leaving factories rose at their fastest rate in 45 years, driven by widespread food price rises, while the cost of raw materials leapt at their fastest rate on record.’
Shadow chancellor Rachel Reeves said: ‘Today’s rising inflation is another milestone for people watching wages, growth and living standards continue to plummet.
‘Though rapid inflation is pushing family finances to the brink, the low wage spiral faced by many in Britain isn’t new.
‘Over the last decade, Tory mismanagement of our economy has meant living standards and real wages have failed to grow.
‘We need more than sticking plasters to get us back on course – we need stronger, and more secure economy.
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