UK inflation hits 40-year high of 9%

Prices are rising at their fastest rate for 40 years as higher energy bills hit millions of households, Report informs referring to BBC.

UK inflation, the rate at which prices are rising, jumped to 9% in the 12 months to April, up from 7% in March.

The surge came as millions of people saw an unprecedented £700-a-year rise in energy costs last month.

Higher fuel and food prices, driven by the Ukraine war, are also pushing the cost of living up, with inflation expected to continue to rise this year.

Around three quarters of the rise in inflation in April came from higher electricity and gas bills, according to the Office for National Statistics (ONS).

A higher energy price cap - which is the maximum price per unit that suppliers can charge customers - kicked in last month, meaning homes using a typical amount of gas and electricity are now paying £1,971 per year on average.

Up until now households of all incomes had faced similar rates of inflation, but the poorest are now being hit hardest by rising prices due to them having to spend far more of their household budgets on gas and electricity, think tank the Institute for Fiscal Studies (IFS) said.

The ONS, which publishes the UK's inflation rate, said the rising cost of raw materials for food products, transport equipment and metals meant prices were climbing in goods leaving factories as manufacturers passed on higher costs.

"All items" on the menus of restaurants and cafes increased last month, which the UK statistics body said was due to the VAT rate for hospitality returning to 20% in April, after being cut to 12.5% to aid businesses recovering from the pandemic.

Meanwhile, average petrol prices stood at £1.62 per liter in April 2022, the highest recorded by the ONS, compared with £1.26 per liter a year earlier.