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Cost of living crisis: inflation rises to 40-year UK high of 9%

The crisis has affected millions of people in a rise in energy bills.

Sophie Smith - 18th May 2022

This is the highest it has been for 40 years.

MP for Leeds West, Rachel Reeves has spoken at length over the past few weeks about how the cost of living is affecting Leeds and its community, whilst calling for the government to take action.

In an interview with The Independent, Rachel commented: “our country faces a cost of living crisis and a growth crisis [...] Wages are being squeezed", and mentioned the 'squeeze' specifically in places like Armley and the impact this is having on BBC Radio 4 this morning.

The Office for National Statistics (ONS) has confirmed today that UK inflation has risen to 9% amid the growing cost of living crisis, reports The Manc.

The data released by the ONS today showed prices hiked across a broad range of everyday goods and services during April, but almost three-quarters of this inflation rise was said to be accounted for by the unprecedented 54% increase in the energy price cap – which kicked in at the start of the month.

Millions of people across the UK saw an unprecedented £693-a-year rise in energy costs last month when the a higher energy price cap was introduced.

The energy price cap – which is the mechanism that outlines the maximum amount that companies can charge to provide energy – has been credited with protecting around 22 million UK households from the worst of the price hikes after COVID-19 restrictions were eased and the war in Ukraine pushed up wholesale gas prices.

The cap also prevented companies from passing on unprecedented increases to their customers.

But the average bill rose by 54%, or £693 annually, from April to £1,971, and the latest forecasts suggest bills could rise to almost £2,600 in October when the next price cap adjustment is due.

Record high prices for both petrol and diesel were other major factors in the inflation rise.

The Consumer Prices Index including owner occupiers’ housing costs grew 7.8% in the year to April 2022.

This is up from the 6.2% growth in the year to March 2022 https://t.co/nLz4yAJDYK

— Office for National Statistics (ONS) (@ONS) May 18, 2022

Read More: Government could scrap annual MOTs amid rising cost of living crisis

Speaking on the price hikes, Grant Fitzner – Chief Economist at the ONS – said: “Inflation rose steeply in April, driven by the sharp climb in electricity and gas prices as the higher price cap came into effect.

“Around three-quarters of the increase in the annual rate this month came from utility bills… [and] steep annual rises in the cost of metals, chemicals and crude oil also continued, along with higher prices for goods leaving factory gates,” he added.

Feature Image- Aldi UK