UK hits double-digit inflation for first time in 40 years

With inflation at 10.1%, the UK joins the 2 billion people worldwide who are suffering from rising prices which erodes their purchasing power.

The inflation rate in the UK has reached 10.1%, according to the Office for National Statistics (ONS). The Consumer Price Index (CPI) rose 10.1% in the 12 months to July 2022. This is a significant jump from 9.4% in June .

The ONS said housing and household services including fuel and transport (fuel again), food and drink are to blame for the spike in prices.

The pump price in the UK currently stands at around £1.72 ($2.08) per litre, having nearly crossed the £2 mark recently. For Diesel, the price sits at £1.84 ($2.23) a litre, after dropping below £2 in June. The ONS said rising food prices were the biggest contributor to the inflation rate.

For Alex Gladstein, director of strategy at the Human Rights Foundation, the UK joins a host of countries suffering from double-digit price increases. More than 2 billion people around the world suffer from the situation in which purchasing power is rapidly eroding.

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10.1% UK inflation as Britons join 2 billion people living under double-digit inflation globally

Germans, Americans and Indians next? https://t.co/qkyESv35WO

In the meantime, for Guy de Coin Bureau, the worst is yet to come for Britons like him. Winter gas supplements are fast approaching, he tweeted. Paul Dales, Chief UK Economist at Capital Economics