Food prices are rising at their fastest rate for 45 years, with the cost of basics such as milk, cheese and eggs all surging, latest figures show.
Soaring energy bills have also sent UK inflation to its highest level for 41 years. Food price inflation hit 16.2% in the year to October, which is a 1.7% increase from 14.5% in September. Inflation is also at its highest rate since 1981 after it jumped to a higher-than-expected 11.1%.
These high prices are hitting low-income households the hardest, as they are forced to spend most of their money on food and gas as prices continue to rise. The ONS said gas prices have leaped nearly 130% higher over the past year, while electricity has risen by around 66%.
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These figures have been released ahead of the new Chancellor's Autumn Budget statement tomorrow (November 17). Jeremy Hunt is expected to announce tax rises and cuts to public spending in a bid to get the economy back on track.
He said: “It is our duty to help the Bank of England in their mission to return inflation to target by acting responsibly with the nation’s finances. That requires some tough but necessary decisions on tax and spending to help balance the books.”
Rising energy and food costs are driving higher inflation for low-income households, our new analysis of experimental inflation rates shows.
This is because a greater proportion of their expenditure is spent on essentials than high-income households’.
https://t.co/dwHq99RofH pic.twitter.com/3bKSzGE0nF— Office for National Statistics (ONS) (@ONS)
Other new figures from the ONS confirmed fears that the cost-of-living crisis is being felt most by low income households, with latest analysis showing that those families suffered annual inflation of 11.9% last month, while the rate stood at 10.5% for high income households. “Rising energy and food costs have more bearing on the inflation rate experienced by low-income households, as a greater proportion of their expenditure is spent on them compared with high-income households,” the ONS said.
Staple foods like milk, cheese, and eggs, have all soared in price, while there were also hefty hikes across everyday items such as sugar, tomato ketchup and jam. Grant Fitzner, chief economist at the ONS, said: “Rising gas and electricity prices drove headline inflation to its highest level for over 40 years, despite the Energy Price Guarantee.”
He added: “Increases across a range of food items also pushed up inflation. These were partially offset by motor fuels, where average petrol prices fell on the month, while the price for diesel rose taking the disparity in price between the two fuels to the highest on record.”
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