UK inflation exceeds 10% as bread and milk prices soar

By Mark Thompson, CNN Business

August 17, 2022

(1º§) (CNN Business) Inflation in the United Kingdom hit a new 40-year high last month, rising above 10% for the first time since 1982 and piling further pain on households already struggling to pay their bills.

(2º§) Annual consumer price inflation hit 10.1% in July, according to data published by the Office for National Statistics on Wednesday, up from 9.4% in June. Soaring food prices - up 12.7% since July 2021 - were the largest single contributor to the acceleration in inflation, the ONS said.

(3º§) The headline inflation number was higher than predicted by a Reuters poll of economists, and food inflation is now running at its highest level in 14 years.

(4º§) "All the eleven food and non-alcoholic beverage classes made upward contributions to the change in the annual inflation rate, where prices overall rose this year but fell a year ago," the ONS said.

(5º§) The largest upward contributions came from bread and cereals, and from milk, cheese, and eggs, with notable price increases in cheddar cheese and yoghurts.

(6º§) On a monthly basis, the consumer price index was up 0.6% in July, compared with no change a year ago. Higher gasoline and diesel prices, together with rising airfares, were also to blame, the ONS added.

www.edition.cnn.com/2022/08/17/economy/uk-inflation-10/index