Skip to content
Search

Latest Stories

Soaring food prices push UK inflation back to 40-year high

The government has been rocked by chaos in markets in the wake a budget that pledged tax cuts that would have been funded by state debt.

Soaring food prices push UK inflation back to 40-year high

British inflation jumped back above 10 percent in September on soaring food prices, official data showed Wednesday, with the country gripped by a cost-of-living crisis bedevilling the government.

The Consumer Prices Index accelerated to 10.1 percent on an annual basis, up from 9.9 percent in August, the Office for National Statistics said in a statement.


The September rate matched the level in July and is the highest in 40 years as a result also of sky-high energy bills.

"I understand that families across the country are struggling with rising prices and higher energy bills," Britain's new finance minister Jeremy Hunt said in a separate statement.

"This government will prioritise help for the most vulnerable while delivering wider economic stability and driving long-term growth that will help everyone."

The government has been rocked by chaos in markets in the wake a budget that pledged tax cuts that would have been funded by state debt.

Most of those measures have since been reversed, leaving Prime Minister Liz Truss fighting to save her job.

Following widespread criticism over the budget, Truss sacked Hunt's predecessor, Kwasi Kwarteng, after less than six weeks in the role.

Analysts said Wednesday's data would put pressure on the Bank of England to keep raising its main interest rate by sizeable amounts.

Capital Economics noted that the BoE could hike its rate by as much as one percentage point to 3.25 percent at its next meeting in November.

'Most pressing problem' 

Victoria Scholar, head of investment at Interactive Investor, said inflation was "the most pressing economic problem facing the Bank of England as well as the government.

"Without price stability, the cost-of-living crisis will continue to weigh on the economy by squeezing household budgets and dampening business margins."

In a bid to help households, the government has capped domestic energy bills until April. However, the original plan was for a cap until late 2024, which Truss pulled earlier this week.

Markets were left spooked that a budget of tax cuts and a costly energy-price cap would add massively to British debt that had already ballooned on government support during the Covid pandemic.

Her budget sent the pound plunging to a record low against the dollar and caused yields on government bonds to soar -- forcing Truss into a huge budget U-turn that has calmed markets.

Following Wednesday's data, the pound was down against the dollar and euro, while London's FTSE 100 shares index steadied at the open.

(AFP)

More For You

scotland-minimum-wages-iStock

Full-time workers on the National Living Wage will receive an annual pay increase of £1,400 in real terms. (Representational image: iStock)

iStock

Wage increase takes effect for thousands of workers in Scotland

HUNDREDS of thousands of workers in Scotland will see a pay increase as new National Living Wage and National Minimum Wage rates take effect from Tuesday.

The changes will benefit approximately 220,000 people, according to STV News.

Keep ReadingShow less
uk-energy-bill-iStock

Water bills, energy prices, and council tax are rising, while the minimum wage has also increased (Representational image: iStock)

iStock

April bill increases put financial strain on single parents

A RANGE of essential household bills are increasing from April, with Citizens Advice warning that single parents will be among the hardest hit.

Water bills, energy prices, and council tax are rising, while the minimum wage has also increased, BBC reported.

Keep ReadingShow less
Netflix drama Adolescence to be screened in UK schools
Stephen Graham and Owen Cooper in 'Adolescence'
Netflix

Netflix drama Adolescence to be screened in UK schools

THE NETFLIX drama Adolescence will be shown in UK secondary schools as part of efforts to address harmful online influences on young boys, officials announced on Monday.

The show has sparked debate over the impact of toxic and misogynistic content on the internet. Prime minister Keir Starmer met the show's creators, charities, and young people at Downing Street, calling the initiative an important step in starting discussions about the content teenagers are exposed to online.

Keep ReadingShow less
Sanger-Tribute

Indian high commissioner Vikram Doraiswami speaking at the memorial.

Bhavan London pays tribute to Joginder Sanger

BHAVAN LONDON held a tribute event on 27 March to honour Joginder Sanger, a British Indian hotelier and philanthropist who passed away at 82 on 28 February.

Sanger, born in Jalandhar, India, established several London hotels, including the Washington Mayfair Hotel, Courthouse Hotels in Soho and Shoreditch, and the Bentley in Kensington.

Keep ReadingShow less
Imran-Khan-Getty

Imran Khan, founder of the opposition Pakistan Tehreek-e-Insaf (PTI) party, has been in jail since August 2023. (Photo: Getty)

Former Pakistan prime minister Imran Khan nominated for Nobel Peace Prize

FORMER Pakistan prime minister Imran Khan has been nominated for the Nobel Peace Prize for his work on human rights and democracy.

The nomination was announced by members of the Pakistan World Alliance (PWA), an advocacy group formed in December, who are also part of the Norwegian political party Partiet Sentrum.

Keep ReadingShow less