Soaring food prices pushed British consumer price inflation to a new 40-year high last month of 9.1%, the highest rate out of the Group of Seven (G-7) countries and underlining the severity of the cost-of-living crunch.
Historical records from the Office for National Statistics (ONS) show May’s inflation was the highest since March 1982 – and worse is likely to come.
“Rising inflation is putting further pressure on policymakers to ease the burden on households, while complicating the Bank of England’s task,” Yael Selfin, chief economist at KPMG U.K., said.
The Bank of England (BoE) said last week that inflation was likely to remain above 9% over the coming months before peaking at slightly above 11% in October, when regulated household energy bills are due to rise again.
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