By UK inflation rising at fastest rate in 40 years as shoppers start setting limits on groceries
Prices are continuing to rise at their fastest rate for 40 years as food, energy, and fuel costs continue to climb.
UK inflation, the rate at which prices rise, increased to 9.1% in the 12 months to May, from 9% in April, the Office for National Statistics (ONS) said.
The figure is now at the highest level since March 1982, when it also stood at 9.1% but the Bank of England has warned inflation will reach 11% this year.
Customers in supermarkets have started to set limits on their weekly shop, as Asda chairman Lord Stuart Rose said people are setting £30 limits.
He told the BBC: “”People are trading back. They are worried about spending. They’ve got a limit that they’ve set out, too. They say £30 is one limit… and if they get to more than £30 then that’s it, stop. It’s the same with petrol.”
He urged the government to do more to help low income households as many families are facing very tough times.
Asda has been tracking disposable income since the financial crisis in 2008, with latest data revealing households had, on average, £44 less a week in discretionary income in May compared with a year ago – a fall of nearly 18%.
This is the amount of money left over after taxes and essential bills have been deducted and it is the third month in a row where disposable incomes have dropped to record levels.
Responding to the latest inflation rate, Chancellor Rishi Sunak said the government was “using all the tools at our disposal to bring inflation down and combat rising prices”.
“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,” he added.
