Hovering meals costs push UK inflation again to 40-year excessive By Reuters

LONDON (Reuters) -The largest bounce in meals costs since 1980 pushed British inflation again into double digits final month, matching a 40-year excessive hit in July in a brand new blow for households grappling with the cost-of-living disaster.

The Workplace for Nationwide Statistics stated the patron worth index (CPI) elevated by 10.1% in annual phrases in September. A Reuters ballot of economists had pointed to a studying of 10.0%, after a 9.9% rise in August.

The pound slipped beneath $1.13 on the information and was final down 0.2% on the day.

Meals and non-alcoholic drinks costs have been the largest driver of inflation in September as they rose by 14.5%, the largest bounce since April 1980 in response to historic modelled estimates of the CPI.

Resort costs additionally elevated in September, the ONS stated.

“Right now’s launch highlights the hazard that underlying inflation stays sturdy even because the financial system weakens,” stated Paul Dales, chief UK economist at consultancy Capital Economics.

He pointed to rising core inflation, a measure that excludes unstable meals and vitality costs, which hit a brand new 30-year excessive of 6.5%.

Britain has been hit onerous by the surge in European costs brought on by Russia’s invasion of Ukraine, which has added to post-COVID supply-chain bottlenecks and labour shortages, creating an intense squeeze on residing requirements.