Fuel and food fires, the highest inflation rate in 40 years

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Rising food and fuel prices pushed inflation to a 40-year high on Wednesday, prompting fresh calls from ministers to do more to help ease the crisis of life.

Official figures from the Office for National Statistics show that in the 12 months to May, inflation reached 9.1 percent, up from 9 percent in April and the highest level since 1982. ۔ But the Bank of England has warned that inflation could reach 11. Percentage later this year, the government is under increasing pressure to provide more assistance to millions of struggling families.

ASDA Chairman Stuart Rose urged the ministers to reconsider and come up with the idea of ​​VAT cuts in order to reduce the rising prices due to the post-Coveid supply crisis and the Russian invasion of Ukraine. Lord Rose told the BBC: “I know the government is reluctant to put its hand back in its pockets, because it has accumulated a huge amount of debt since the Cove.

“But it’s a crisis of similar proportions, and people could be affected much longer by what Cowade has done to us.

“So it’s time to think again. I would encourage them to work harder and I would urge them to work harder for those who are below the earnings scale.

The ONS said the latest rise in inflation was largely due to food prices, which rose 8.7 per cent year-on-year to May. The largest portion was bread, grain, and meat.

But it added that the jump in fuel prices was also behind the rise in inflation in May 2022 with average petrol prices at 165.9p per liter, up from 127.2p per liter a year ago.

With a record rise in diesel and petrol prices in May, the ONS said the 12-month rate for motor fuel was 32.8%, the highest since January 1989.

The war in Ukraine is likely to increase price pressures in the coming months, and today, in another blow, the RAC said that petrol and diesel prices reached new heights yesterday.

Grant Fitzner, chief economist at ONS, noted the “steady rise in food prices and high petrol prices” but also highlighted the “cost of goods coming out of factories” which he described. “It’s the fastest growth in 45 years,” he said.

Rising raw material and factory prices have raised new fears that inflation could persist for a long time, leading to further demands from workers in the public and private sectors to increase wages.

The former finance minister, Lord O’Neill, told BBC Radio 4’s Today program that the UK economy was in a “critical state” and added that further inflation could lead to a “terrible vicious circle of the 1970s”. That would force the Bank of England to take even tougher action. Action to control rising prices.

Last week, it raised interest rates by 0.25 percentage points to 1.25 percent.

Chancellor Rishi Sink is resisting calls by some cabinet colleagues and Tory MPs to reduce the income tax to ease the crisis.

The Office for National Statistics says inflation rose again in May, hitting a 40-year high.

Consumer Price Index (CPI) inflation rose to 9.1 percent in May from 9 percent in April, statisticians said.

The increase is in line with analysts’ expectations.

Grant Fitzner, chief economist at ONS, said, “Although it is still at a historically high level, the annual inflation rate has changed little in May.”

“The sustained rise in food prices and the record high petrol prices have been offset by lower clothing prices than at the same time last year and frequent fluctuations in computer game prices.

“The cost of goods coming out of factories has risen at their fastest rate in 45 years, which has led to a sharp rise in food prices, while the price of raw materials has risen to their record fastest rate. “

Photos of the Press Association

The ONS said the change was due to rising food prices, which pushed up inflation by more than 0.2 percentage points.

Clothing and footwear prices helped keep inflation in check, while prices for entertainment and culture also pushed it down.

The news will add to the hardships faced by many people across the UK. Energy bills for the average household rose 54 percent in early April and will remain at that level until October.

But forecasts released this week predict that the government’s ceiling on energy bills in the fall could rise to an already record £ 1,971 to £ 2,980.

The Bank of England predicts that inflation will rise to more than 11% in October after the price range is changed again.

Shadow Chancellor Rachel Reeves said: “Today’s rising inflation is another milestone for those who see wages, growth and living standards continue to fall.

“While high inflation is pushing family finances to the brink, low wages for many people in the UK are nothing new.

“Over the past decade, severe mismanagement of our economy has meant failing to raise living standards and real wages.”

Chancellor Rishi Sink said: “I know people are worried about the rising cost of living, which is why we have taken targeted action to help families, with لاکھ 1,200 for the 8 million most vulnerable families.” Are

“We are using all the tools at our disposal to reduce inflation and counter rising prices – we have an independent monetary policy, a responsible monetary policy that does not increase inflationary pressures, and our long-term productivity potential. Can build a strong economy and growth. “

Energy prices are not just about meeting household energy bills.

Gas, oil and other fossil fuels are needed to make and transport the many goods that households buy each month.

When the price of fuel goes up, so does the price of the final product.

Energy prices have risen over the past year. To begin with, they began to grow when the global economy began to reopen and demand for energy increased after epidemics.

Prices later deteriorated further, especially in Europe, when Russia launched a massive invasion of Ukraine in February.

Russia is one of the world’s largest energy producers.