Pressure on households ramps up as inflation rises to new 40-year high

The rate of consumer pries index inflation rose from 9 per cent to 9.1 per cent in May, according to the Office for National Statistics.

This is the highest level since 1982, according to official estimates.

The figures come as the country is facing the largest railway strikes in decades, with the threat of more industrial action to come through the summer from other public sector staff.

Trades Union Congress general secretary Frances O’Grady said that the Government should defend wages and give decent pay rises to public sector workers.

“With inflation rising twice as fast as average pay, we need a Government that will stand up for working people,” Ms O’Grady said.

“But instead, we have ministers spoiling for a fight with workers who take action to defend their living standards.”

“Though still at historically high levels, the annual inflation rate was little changed in May,” said ONS chief economist Grant Fitzner.

“Continued steep food price rises and record high petrol prices were offset by clothing costs rising by less than this time last year, and a drop in often fluctuating computer games prices.

“The price of goods leaving factories rose at their fastest rate in 45 years, driven by widespread food price rises, while the cost of raw materials leapt at their fastest rate on record.”

The change was in large part driven by the increase in food prices, which added more than 0.2 percentage points to the inflation number, the ONS said.

Pizza and quiche are among the items that have seen rapid price rises in recent weeks.

Prices of the two products had risen by 3.1 per cent in the year to April; a month later this had increased to 12.3 per cent.

Potatoes had previously avoided some of the high inflation figures that other food items saw in recent months.

However, in May they started catching up as the rate of inflation for potatoes more than doubled to 5.1 per cent.

The ONS has a list of goods and services which households across the UK regularly buy. In order to calculate the inflation rate, statisticians measure if the prices

of these items have changed and by how much.

Those products that people spend more on, such as petrol, count more towards the inflation figures than smoked meats, for instance.

The growth in the price of flours and other cereals also soared, nearly doubling from 9.3 per cent to 16.3 per cent.

Ukraine is one of the world’s biggest exporters of grain, and experts were concerned about supplies and prices of wheat-based products after the invasion in February.