UK inflation hit a new 40-year high in July at 10.1% year-on-year, as rising food and energy prices continued to put more pressure on households, CNBC and News.ro reported.

The consumer price index rose 10.1% year-on-year, according to estimates released on Wednesday by the Office for National Statistics, beating the consensus forecast of analysts polled by Reuters at 9.8%, up from 9.4% in June.

Core inflation, which excludes energy, food, alcohol and tobacco, was 6.2% in the year to July 2022, up from 5.8% in June and above forecasts of 5.9%.

British 2-year bond yields rose more than 0.26 percentage point to 2.41% on Wednesday morning after the release of inflation data, the highest level since November 2008.

Rising food prices made the biggest contribution to the annual rate of inflation in June-July, according to a report by the National Bureau of Statistics.

Chain stores in Great Britain

“Supermarkets have had no choice but to pass on price increases to suppliers who themselves have faced unprecedented increases in the cost of raw materials and ingredients,” said Kien Tan, director of retail strategy at PwC.

“This is particularly acute in labour-intensive and utility-intensive categories such as dairy, with reports that the price of a carton of milk has more than doubled in some stores since the start of the year.”

The Bureau of Statistics reiterated that its estimates of consumer price inflation “predict that the consumer price index would have been higher around 1982.

The Bank of England has made six consecutive interest rate hikes in an effort to control inflation and earlier this month made the biggest single rate hike since 1995, forecasting that the UK will enter its longest recession since the global financial crisis in the fourth quarter of 2018. year.

The bank expects inflation to exceed 13.3% in October.