Inflation hits fresh 40-year high of 9.4%

20 Jul 2022

The rate of inflation has hit a fresh 40-year high, according to the latest data from the Office for National Statistics (ONS).

The UK's consumer price inflation reached an annual rate of 9.4% in June, up from May's figure of 9.1%, the ONS said.

It said that June's inflation figure was partly due to a 42% year-on-year increase in petrol prices and an increase of almost 10% in food prices.

The prices paid by factories for materials and energy were 24% higher in June than a year earlier – the biggest increase since records began in 1985 – while prices charged by factories jumped by 16.5%.

The Bank of England is expecting a further acceleration in October when the energy price cap is adjusted again and is predicted to surge towards average annual bills above £3,000.

Anna Leach, Deputy Chief Economist at the Confederation of British Industry (CBI), said: 'This data underscores the need to give people more control over their energy bills: through speeding up planning decisions for electricity infrastructure and creating a national effort to help households better insulate their homes. 

'But to build resilience to price shocks over the longer-term, the government needs to focus on boosting the economy's supply potential. Incentivising investment through a permanent successor to the super deduction and supporting the development of green infrastructure are crucial first steps.'

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Higgisons was formed by John Higgison in Oxford Street in 1965 and was originally part of the Accountancy Tuition Centre until James McHale became managing partner and the firm moved to its City Road premises in 1982.

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