Inflation hits 40-year high

Inflation has hit a 40-year high, rising to 9.1 per cent in May over the past 12 months.

That 's according to statistics released today from the Office for National Statistics (ONS).

They said rising prices for food and non-alcoholic beverages contributed towards inflation in May, with the highest increases seen in bread, cereals and meat.

Responding to the latest inflation rate, Chancellor Rishi Sunak said the Government is 'using all the tools ' within their remit to combat rising prices and bring down inflation.

The Bank of England has predicted that this rate will peak to 11 per cent later in the year.

Erin Henwood (pictured), policy advisor at Greater Birmingham Chambers of Commerce said: “Concerns about the cost of doing business are understandably rising as inflation hits a 40-year high, consumer confidence drops below levels seen during the 2008 global financial crisis, and the economy contracts by 0.3 per cent.

“According to early analysis of our Q2 Quarterly Business Report, a record number of firms across Greater Birmingham are sharing concerns about the impact that inflation will have on their business. Nearly half reported feeling pressure to raise their prices as a result of increasing labour costs and raw material prices.

“Though the Bank of England says it is prepared to 'act forcefully ' to address skyrocketing prices, any action taken must be in conjunction with intervention from Government, including a plan for growth to help the UK through this economic crisis. ”

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