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UK inflation accelerated more than expected last month to the highest in 40 years, intensifying a squeeze on consumers and adding to pressure for action from the government and Bank of England.
The Consumer Prices Index rose 10.1% in July from a year earlier after a 9.4% gain the month before, the Office for National Statistics said Wednesday. The reading was higher than expected by both the BOE and private-sector economists.
“Food prices rose notably, particularly bakery products, dairy, meat and vegetables, which was also reflected in higher takeaway prices,” said Grant Fitzner, chief economist at the ONS. “Price rises in other staple items, such as pet food, toilet rolls, toothbrushes and deodorants also pushed up inflation in July.”
Also read: UK inflation surges to new 40-year high of 9.4% amid rising fuel prices
Core inflation — excluding energy, food, alcohol and tobacco — accelerated to 6.2% from a year ago in July, more than the 5.9% reading that economists had expected.
Contenders seeking to replace Boris Johnson as prime minister are promising further aid to those struggling to pay their bills.
