UK inflation climbs to 9.4%

Consumer price inflation in the UK reached 9.4% in June, according to the latest data.

This is up from 9.1% in May and represents a new 40-year high, the Office for National Statistics (ONS) said.

The increase was driven by higher costs for fuel and food. Petrol prices rose by 18.1p per litre in June, while prices have also increased on a wide range of food items including milk, cheese and eggs as well as vegetables, meat and ready meals.

Research firm Kantar said this week that with grocery price inflation at almost 10%, supermarket bills are set to rise by an average of £454 this year.

As prices rise, shoppers are buying more own-label products to help lower the cost of their weekly shop. Aldi and Lidl are also seeing more customers, with 1.4 million additional households visiting at least one of the discounters in the latest three months compared with last year.

With energy bills due to go up again in October when the price cap is adjusted, the Bank of England has warned that inflation is likely to exceed 11% before the end of the year.