Join us today (July 21) at 1pm live on the Daily Mirror Facebook page
Higher food and petrol prices have pushed inflation up to a 40-year high of 9.4% in June, the latest figures show .
The news is a hammer blow to UK households, who are grappling with the rising cost of living - and more price hikes are coming .
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.
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.
Join us today (July 21) at 1pm live on the Daily Mirror Facebook page
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.
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 9.4%, it would cost £1.094 today.
Inflation has now risen for nine straight months.
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.
Households will see their yearly food shopping bills hiked by £380 this year due to the soaring price of groceries.
Here is a breakdown of how much extra shoppers are paying for everyday essentials.
Food price increases
- Low fat milk - 26.3%
- Butter - 21.5%
- Olive oil - 18.2%
- Sauces, condiments, salt, spices & culinary herbs - 17.1%
- Ready-made meals - 16.7%
- Cooking oils and fats - 16.6%
- Pasta & couscous - 15.9%
- Jams, marmalades & honey - 15.1%
- Poultry - 14.9%
- Margarine & other vegetable fats - 14.6%
- Eggs - 11.5%
- Pork - 9.8%
- Bread - 9.7%
- Potatoes - 9.4%
- Edible ices & ice cream - 8.9%
- Fish - 8.0%
- Fruit - 6.9%
- Breakfast cereals - 6.2%
- Sugar - 5.1%
- Rice - 4.4%
Drink price increases
- Mineral or spring waters - 19.5%
- Coffee - 13.2%
- Fruit & vegetable juices - 9.1%
- Tea - 6.8%
- Soft drinks - 6.6%
- Beer - 2.2%
- Wine - 1.7%
Join us today (July 21) at 1pm live on the Daily Mirror Facebook page
