Home Business Prices continue to rise, as Inflation hits 40-year high of 9.1%

Prices continue to rise, as Inflation hits 40-year high of 9.1%

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UK Inflation Infographic June2022
UK Inflation Infographic June2022

Statisticians said the rate of the consumer prices index rose from 9% in April to 9.1% in May amid warnings the global economy could be tipped into a recession.

The rate of inflation rose again in May, remaining at 40-year highs, the Office for National Statistics has said.

The rate of consumer prices index (CPI) inflation rose from 9% in April to 9.1% in May, the statisticians said.

The increase matches what analysts had expected.

“Though still at historically high levels, the annual inflation rate was little changed in May,” said ONS chief economist Grant Fitzner.

“Continued steep food price rises and record high petrol prices were offset by clothing costs rising by less than this time last year, and a drop in often fluctuating computer games prices.

“The price of goods leaving factories rose at their fastest rate in 45 years, driven by widespread food price rises, while the cost of raw materials leapt at their fastest rate on record.”

There are also signs the worst is still to come as the producer price index, which measures inflation before it reaches consumers, surged to a 45-year high of 15.7pc.

Responding to the latest inflation figures, the chancellor of the exchequer Rishi Sunak said: “I know that people are worried about the rising cost of living, which is why we have taken targeted action to help families, getting £1,200 to the eight million most vulnerable households.

“We are using all the tools at our disposal to bring inflation down and combat rising prices, we can build a stronger economy through independent monetary policy, a responsible fiscal policy which doesn’t add to inflationary pressures, and by boosting our long-term productivity and growth.”

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