UK inflation picks up to 10.1%
Newsflash: UK inflation has risen to 10.1% as the cost of living crisis continues to hit households.
That matched a 40-year high in July.
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Personal Inflation Calculator: Find out how rising UK prices are affecting you
Although inflation is officially at 10.1%. Depending on what you typically buy each month, you may have different personal inflation rates.
That’s because the price of some items has risen more than others – the Office for National Statistics uses a basket of goods to assess the rising cost of living.
We have built a calculator that will allow you to find your personal inflation rate, Gentlemen:
TUC: Truss and Hunter must end millions of anxiety over universal credit, pensions and benefits
Secretary General of TUC Frances O’Grady Urge Liz Truss and Jeremy Hunt to guarantee benefits will rise with September’s inflation figures:
“With inflation still high, the government must ensure that every family can afford food and stay warm this winter.
“But millions are already skipping meals and turning off the heat. Yet the prime minister and the prime minister still refuse to confirm that universal credit, pensions and benefits will keep pace with inflation.
“It’s no wonder so many workers are seeking higher wages and taking action to win fair pay deals.”
CPI inflation was 10.1% in September, returning to the recent high in July. (Retail Price Index 12.6%)
Food inflation at 14.8%, the highest level since at least 1989 (below)
(The ONS said CPIH inflation for food and non-alcoholic beverages was 14.6%, the highest since April 1980) pic.twitter.com/fRxKAWW9NJ
— TUC Department of Economic and Social Affairs (@TUCeconomics) October 19, 2022
Food Inflation Explained
Food prices rose 14.8% from last year, driven largely by commodities such as food. bread and cereals (up 14.5% over last year), paste and Couscous (+22.7%), Meat (+15.3%), low-fat milk (+42.1%), butter (+28%) and Egg (+22.3%).
fruit Prices rose 8.8%, while Potato spend 19.9% more,
potato chips rose 11.8%, while jam, jam and Honey Cost 28.1%.
If key benefits are raised next year through income rather than inflation – which the government is reportedly considering as a way to cut public spending – then 9 million households will face a loss of income, with low-income families with children taking a hit maximum. pic.twitter.com/vx6gppRCIf
— Resolution Foundation (@resfoundation) October 19, 2022
Here’s a breakdown of what drove UK inflation back to a 40-year high of 10.1% in September:
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Food and non-alcoholic beverages: 14.5% – up from 13.1% a month ago
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Alcoholic beverages and tobacco: 5.5%
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Apparel and footwear: 8.5%
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Housing, water, electricity, gas and other fuels: 20.2%
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Furniture, household equipment and repairs: 10.7%
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Health: 3.5%
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Traffic: 10.6%
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Communication: 2.4%
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Entertainment and Culture: 5.2%
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Education: 4.3%
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Restaurants and hotels: 9.7% – up from 8.7% a month ago
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Miscellaneous goods and services: 5.0%
Solution: Raising benefits based on inflation is critical
The Resolution Foundation said it was crucial that the government used September’s inflation data to update benefits for next April, rather than make another U-turn.
Resolution said a 10.1 per cent increase in benefits in April next year would help 10 million working-age families navigate the deepening cost of living crisis.
September’s inflation figures are typically used to set welfare increases for next year — and Jack LeslieSenior Economist Resolution Foundationsaying families need support:
“Soaring food prices have driven UK inflation back to double digits, high inflation also looks set to persist for some time, and accelerating producer price inflation in the services sector and the early end of energy price guarantees could put upward pressure on UK consumer prices next year.
“This bleak outlook means household incomes will continue to fall significantly next year, especially with the removal of Energy Bill support.
“This is the backdrop for debate within the government over whether previous promises to raise benefits or pensions based on price should be the next U-turn to be announced. Although the Treasury’s huge savings may seem like a lot of money in the context of trying to fill the fiscal gap Attractive, but the cost to 10 million working-age families and almost all pensioners in the worst cost-of-living crisis in half a century would be enormous.”
How much will the Treasury save if it raises benefits next year through earnings instead of prices?
– £6.2bn if applicable to state pensions and pension credits
– £5.2bn in working age benefits
– £3bn unprotected working age
cost?Slashing income amid cost-of-living crisis— Resolution Foundation (@resfoundation) October 18, 2022
The RPI measure of inflation also rose to its highest level in 40 years.
The retail price index jumped to 12.6% in the year to September from 12.3% in August.
Although the RPI is no longer a “national statistic”, it is still used for wage negotiations, as well as raising some maintenance costs and housing rents.
General Secretary of Unity salon Graham Say:
“With the RPI now at 12.6%, workers and communities cannot afford to pay for a crisis they didn’t create.
“We won’t stand idly by and watch as the state cuts wages while companies make profits and the government adds fuel to the fire.”
“With the RPI now at 12.6%, workers and communities cannot afford to pay for a crisis they didn’t create.
“We won’t stand idly by and watch as the state cuts wages while companies make profits and the government adds fuel to the fire.” @UniteSharon https://t.co/2RD2eUUrxP— United Union: Join a union (@unitetheunion) October 19, 2022
While lower crude prices have helped to ease inflationary pressures, UK businesses are still facing record-high cost increases.
Input costs such as raw materials rose 20.0% in the year to September, down from 20.9% a month earlier.
Costs charged “at the factory gate” also eased – output inflation rose 15.9% from last year, down from 16.4% as of August.
For the year ending September 2022:
▪️ Raw material costs rose by 20.0%, down from 20.9% in the year to August – this is the third time in a row that we have seen a slowdown in annual growth
▪️ The cost of manufactured goods rose 15.9%, down from 16.4% in the year to August➡️ https://t.co/bXni08fmaW pic.twitter.com/qPXa6IrWip
— Office of National Statistics (ONS) (@ONS) October 19, 2022
Shadow Chancellor Rachel Reeves said:
“This morning’s inflation figures will add more anxiety to households worried about the Tories’ lack of control over the economic crisis they’ve created.
“It is clear that the damage has been done. This is a Tory crisis, made in Downing Street and paid for by working people.
“The facts speak for themselves: Mortgage costs have soared, borrowing costs have risen, living standards have fallen, and the G7 is expected to experience the lowest growth rate over the next two years.
“What we need now is a restoration of financial credibility and a serious growth plan that puts working people first. That’s what Labour will bring.”
Hunt: We will prioritize ‘helping the most vulnerable’
Principal Jeremy Hunt He has said the government will give priority to helping the most vulnerable after inflation rises to 10.1%.
Hunt said in a statement:
From what I understand, households across the country are struggling with rising prices and rising energy bills.
“This government will prioritise helping the most vulnerable, while delivering broader economic stability and driving long-term growth that works for all.
“We have acted decisively to protect households and businesses from the sharp rise in energy bills this winter, with the government’s guarantee of energy prices curbing inflation peaks.”
However, hunt The government’s energy price freeze has just been capped from two years to six months. This means the average annual energy bill could rise to more than £4,000 from April.