Inflation in the United Kingdom reached a 40-year high in September, as rising food prices squeezed household budgets.
The consumer price index increased 10.1% in March, up from 9.9% the previous month, according to the Office for National Statistics on Wednesday. According to the new data, inflation has returned to its July peak and is now at its highest level since early 1982.
The increase was driven by food prices, which rose 14.5% year on year, the largest increase since 1980, according to the ONS.
As the Bank of England struggles to return inflation to its 2% target, the rise raises expectations that interest rates will be raised further and faster.
It will also make it more difficult for the government’s new Treasury Secretary, who took office less than a week ago, to restore financial stability after the government’s economic plan roiled financial markets in the previous month. According to Jeremey Hunt, the government “will prioritize assistance for the most vulnerable while delivering broader economic stability.”
Russia’s war in Ukraine has pushed up food and energy prices around the world, as oil, grain, and cooking oil shipments have been disrupted. This has exacerbated price increases that began last year as the global economy recovered from the COVID-19 pandemic.
