What is the UK inflation rate and why is the cost of living

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What is the UK inflation rate and why is the cost of living

Messagepar geemong » Mer 26 Oct 2022 08:55

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What is the UK inflation rate and why is the cost of living rising?


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The cost of living is increasing at its fastest rate in 40 years.

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The rising prices of food and energy are the main causes.


What does inflation mean?
Inflation is the increase in the price of something over time.

For example, if a bottle of milk costs £1 and it goes up to £1.05 a year later, then milk inflation is 5%.


Why are prices rising so fast?
The cost of energy is a key reason why things are getting more expensive.

Oil and gas prices increased because they were in greater demand as life got back to normal after Covid. At the same time, the war in Ukraine meant less was available from Russia, putting further pressure on prices.

The war in Ukraine also led to food prices going up, by reducing the amount of grain available.

The price of food and non-alcoholic drinks rose by 14.6% in the year to September, reaching its highest level since April 1980.

Separate research focusing on 30 everyday supermarket items reveals dramatic increases in the price of pasta (60%), tea (46%) and vegetable oil (65%) in the 12 months to September.

Only a few items fell in price, including orange juice (-8.9%) and beef mince (-7.4%).
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