New figures released by the Office for National Statistics (ONS) show that Consumer Prices Index (CPI) inflation reached 10.1% in September, compared with 9.9% in August. The figure matches the 40-year high inflation hit in July and remains well above the UK Government’s target of 2%.
The increase was driven by food prices, leaping by 14.5% compared with the same month last year, representing the largest annual rise since 1980, according to data modelling. Meanwhile, housing and utilities costs leapt by 20.2% compared to the same month last year.
Prime Minister Liz Truss told the House of Commons on Wednesday the UK Government is committed to the Triple Lock, meaning State Pension will increase in line with the 10.1% inflation figure from next April, but would not be drawn on the uprating for other benefits. New Chancellor Jeremy Hunt also said on Wednesday he would prioritise help for the vulnerable after the inflation increase was revealed.
Mr Hunt said: “I understand that families across the country are struggling with rising prices and higher energy bills.
“This Government will prioritise help for the most vulnerable while delivering wider economic stability and driving long-term growth that will help everyone.
“We have acted decisively to protect households and businesses from significant rises in their energy bills this winter, with the Government’s energy price guarantee holding down peak inflation.”
The inflation rate will also be used to decide the increase in business rates: the property tax facing high street firms.
Economists at the ONS said rising transport prices slowed significantly last month on the back of cheaper fuel costs.
The Bank of England warned last month that inflation is expected to peak in October at just below 11%, following Government support to freeze energy bills at £2,500 for an average household.
Inflation impact on household weekly shopping
The cost of food and drink has increased at its sharpest rate since 1980, with surges in the prices of many key items in the average household’s shopping basket.
The rise in the cost of groceries has been accelerated by the war in Ukraine, which has pushed up the cost of fertiliser and animal feed due to the impact on grain supply from the region.
Food and drink prices have also been affected by the recent weakness in the pound, which has caused more expensive imported products and ingredients.
Here are some examples of how the cost of food has risen in the past year.
The figures are based on the CPI measure of inflation and have been published by the ONS. In each case, the figure is the percentage change in the average price over the 12 months to September 2022.
- Low-fat milk, 42.1%
- Margarine and other vegetable fats, 30.5%
- Whole milk, 30.2%
- Jams, marmalades and honey, 28.1%
- Butter, 28.0%
- Olive oil, 27.2%
- Cheese and curd, 23.1%
- Pasta and couscous, 22.7%
- Eggs, 22.3%
- Sauces, condiments, salt, spices and culinary herbs, 22.1%
- Frozen vegetables other than potatoes, 20.3%
- Potatoes, 19.9%
- Ready-made meals, 19.0%
- Poultry, 17.2%
- Meat, 15.3%
- Bread, 14.6%
- Fish, 13.5%
- Yoghurt, 12.8%
- Crisps, 11.8%
- Edible ices and ice cream, 11.5%
- Fresh or chilled vegetables other than potatoes, 11.1%
- Pizza and quiche, 9.7%
- Fruit ], 8.8%
- Rice, 6.8%
- Breakfast cereals and other cereal products, 6.8%
- Confectionery products, 6.1%
- Sugar, 4.7%
- Dried fruit and nuts, 4.6%
- Chocolate, 3.3%
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