UK inflation hits new 40-year high of 10.1% as food and energy price surge continues - CNBC

inflation rose to another 40-year high in July as spiraling food and energy prices continued to intensify the country's historic squeeze on households.

Core inflation, which excludes energy, food, alcohol and tobacco, came in at 6.2% in the year to July 2022, rising from 5.8% in June and ahead of projections of 5.9%.

Rising food prices made the largest upward contribution to annual inflation rates between June and July, the ONS said in its report.

The ONS repeated that its indicative modelled consumer price inflation estimates "suggest that the CPI rate would last have been higher around 1982, where estimates range from nearly 11% in January down to approximately 6.5% in December.".

Richard Carter, head of fixed interest research at Quilter Cheviot, predicted that the Bank of England will likely respond at its next monetary policy meeting with yet another 50 basis point interest rate hike in a bid to combat inflation, and said there is no doubt that the cost-of-living crisis is going to get worse before it gets better.