UK inflation fell slightly to 9.9% in the 12 months to August, but the cost of living crisis continues to squeeze household finances.
Inflation is down from a 40-year high of 10.1% in July - and means Consumer Prices Index (CPI) inflation is now five times higher than the Bank of England target of 2%.
The Consumer Prices Index (CPI) measure of inflation dropped slightly because of a fall in petrol and diesel prices - but food and clothing became more expensive.
Yesterday The Mirror reported that shoppers are now paying an eye-watering £5,181 a year for groceries on average - with some items costing a third more.
The news is a hammer blow to UK households, who are grappling with the rising cost of living.
Mirror business editor Graham Hiscott will be joined by Mirror Money reporter Sam Barker today at 1pm on a Mirror Facebook Live to run through everything you need to know.
You can ask us a question during the live broadcast, or drop us a line now at: mirror.money.saving@mirror.co.uk.
We will explain what's happening with inflation - and what to do about it to make your money go further.
Join us today (September 15) at 1pm live on the Daily Mirror Facebook page
High inflation affects how much you spend in shops, the power of your savings and your private pension.
But on the other hand it is good news for groups like state pensioners.
When inflation rises, it means that your money doesn’t go as far as it used to.
For example, if something cost £1 a year ago and the rate of inflation is 9.9%, it would cost £1.09 today.
The ONS said: "Food and non-alcoholic beverages made the largest upward contribution to the monthly rates in August 2022, while falling prices for motor fuels resulted in a large offsetting downward contribution."
Experts said consumers will be stuck paying high prices for months.
Mazars chief economist George Lagarias said: "Inflation slowed down somewhat in August but remained at overall very high levels.
"Higher energy prices for all the previous months have fully fed into most supply chains and it will take months of lower oil for end consumer prices to meaningfully come down again. Inflation may well remain a central theme until at least the end of the year."
Why is inflation rising?
The rate of inflation is increasing across the world - not just the UK - and there are several reasons why this is happening.
Household spending started to rise in early 2021 when the UK began easing coronavirus restrictions.
When people are spending more, it drives up demand and pushes up prices.
Rising energy bills, petrol prices and food in the UK have been major reasons why inflation has risen so much.
The Russian invasion of Ukraine earlier this year has also caused prices to rise.
Agricultural commodities, such as grain, which are needed to produce food, have risen too off the back of the crisis.
