Today’s inflation increase highlighted the harsh pressure that households are now experiencing.
From an annual rate of 9% in April to a 40-year high of 9.1% in May, the headline CPI rate climbed.
Since records began keeping track in 1989, the annual increase in the price of gasoline and diesel was 32.8%.
The official numbers were as expected, but they will put pressure on the Bank of England to slow the increases by raising interest rates once again.
According to its forecast, as energy prices rise due to the Ukraine situation and the economy slows, inflation will reach 11% by the end of the year.
The government is “using all the measures at our disposal to bring inflation down and battle increasing costs,” according to Chancellor Rishi Sunak.
In order to prevent a spiral from forming that may push the nation deeper into turmoil, ministers have been begging for pay restraint.
However, a wave of strikes by train employees demanding significant raises is already underway, and there are warnings that Royal Mail and teachers may follow suit.
Mr Sunak said: ‘I know that people are worried about the rising cost of living, which is why we have taken targeted action to help families, getting £1,200 to the eight million most vulnerable households.
‘We are using all the tools at our disposal to bring inflation down and combat rising prices – we can build a stronger economy through independent monetary policy, responsible fiscal policy which doesn’t add to inflationary pressures, and by boosting our long-term productivity and growth.’
ONS Chief Economist Grant Fitzner said: ‘Though still at historically high levels, the annual inflation rate was little changed in May.
‘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.’
According to the ONS, motor fuels had the most increasing impact on inflation.
Compared to a lesser increase of 1.7p per litre a year prior, the average price of gasoline increased by 4.1p per litre in May.
Compared to a year earlier, the price of diesel increased by 3.6 pence per litre.
“Today’s increasing inflation is another milestone for people seeing wages, growth, and living standards continue to decline,” said shadow chancellor Rachel Reeves.
‘Though rapid inflation is pushing family finances to the brink, the low wage spiral faced by many in Britain isn’t new.
‘Over the last decade, Tory mismanagement of our economy has meant living standards and real wages have failed to grow.
‘We need more than sticking plasters to get us back on course – we need stronger, and more secure economy.
