The Consumer Price Index (CPI) rose to 10.1% in the 12 months to July, up from 9.4% in June and remaining at the highest level since February 1982, the Office for National Statistics (ONS) said. Rising food prices were the biggest driver of the latest rise, according to the ONS, with annual inflation for these items now at 12.7%, up from 9.8% in June, fueled by increases of prices for basic products such as bread, milk, cheese. and eggs. What needs to be done to bring prices back to normal? Your cost of living questions answered July inflation is higher than the 9.8% most economists expect and represents a further squeeze on citizens’ pockets. It comes after separate figures released on Tuesday showed workers had suffered a record drop in real wages in the face of spiraling prices. Millions of public sector workers are expected to vote to strike over pay this autumn in what could be the biggest wave of industrial action since the 1970s. The rate of inflation will increase pressure on the government to take further action to tackle the cost of living crisis as the Tory leadership contest continues. Boris Johnson’s spokesman said there would be no further intervention before September 5, when either Rishi Sunak or Liz Truss will become the new prime minister, despite Labor leader Sir Keir Starmer proposing his own his “radical” package of measures that he says would help. families endure this winter. Responding to the rise in inflation, Chancellor Nadhim Zahawi said: “I understand that times are difficult and people are concerned about the price increases that countries around the world are facing. “While there are no easy solutions, we are helping where we can through a £37bn support package, with further payments for those on the lowest incomes, pensioners and disabled people and a £400 discount on energy bills for all the coming months. “Getting inflation under control is my top priority and we are taking action through strong, independent monetary policy, responsible tax and spending decisions and reforms to boost productivity and growth.” The ONS’s chief economist, Grant Fitzner, said: “A broad range of price increases led inflation again this month. “Food prices rose significantly, particularly bakery products, dairy, meat and vegetables, which was also reflected in higher takeaway prices. “Price increases in other staples such as pet food, toilet roll, toothbrushes and deodorants also pushed up inflation in July. “Driven by higher demand, the price of package holidays rose, after falling over the same period last year, while airfares also rose. “The cost of both raw materials and goods leaving factories continued to rise, driven by the price of metals and food respectively.”
