Skip to content
Search
AI Powered
Latest Stories

Inflation hits fresh 40-year high

Inflation hits fresh 40-year high

British annual inflation has hit a fresh 40-year high, official data showed Wednesday, further eroding workers' wages and pressuring the Bank of England to keep on raising interest rates.

The headline inflation rate edged higher to 9.1 percent in May from 9.0 percent in April, remaining at the highest level since 1982, the Office for National Statistics (ONS) said in a statement.


The figures show food inflation at 8.6 per cent, almost in line with the grocery inflation figures of 8.3 per cent reported by market researcher Kantar yesterday.

UK inflation is set to top 11 percent before the end of the year according to the Bank of England, fuelled by soaring energy prices.

Inflation increased in May on "continued steep food price rises and record high petrol prices", said ONS chief economist Grant Fitzner.

This was offset by clothing costs rising by less than a year earlier and a drop in prices of computer games, he added.

Responding to the inflation figures, Helen Dickinson, chief executive of the British Retail Consortium, said businesses are also feeling the squeeze from rising prices, as "higher energy prices, a tight labour market and increasing transport and commodity costs filter through to consumers."

But she added that retailers will continue try to absorb as much of the costs as possible.

“Retailers are working hard to do what they can to protect their customers from price rises, including by expanding value ranges, keeping the cost of essentials down and providing discounts for certain vulnerable groups. With inflation only set to rise, the BRC will continue to work with retailers to find ways to mitigate future price rises,” she said.

Decades-high inflation is causing a cost-of-living crisis.

Britain's railway workers are this week staging the sector's biggest strike action in more than 30 years, as soaring prices erode the value of wages.

Countries around the world are being hit by soaring inflation as the Ukraine war and the easing of Covid restrictions fuel energy and food price hikes.

That has forced central banks to hike interest rates, risking the prospect of recession as higher borrowing costs hit investment and consumers further in the pocket.

The Bank of England has raised its key interest rate five times since December.

The UK meanwhile faces more strikes, with lawyers in England and Wales having voted to walk out from next week in a row over legal aid funding.

Teaching staff, workers in the NHS and the postal service are also mulling strike action.

More for you

A woman walks past a window display promoting an ongoing sale

A woman walks past a window display promoting an ongoing sale, on December 13, 2024 in London, England.

Photo by Leon Neal/Getty Images

Retail sales disappoint before Christmas

UK retail sales rose less than expected in the runup to Christmas, according to official data Friday that deals a fresh blow to government hopes of growing the economy.

Separate figures revealed a temporary reprieve for prime minister Keir Starmer, however, as public borrowing fell sharply in November.

Keep ReadingShow less
Sybren Attema, and Betty Eekchaut

Presidents Sybren Attema, FrieslandCampina, and Betty Eekchaut, Milcobel

Yazoo parent FrieslandCampina announces merger with Belgian rival Milcobel

Dutch dairy collective FrieslandCampina has agreed to merge with smaller Belgian rival Milcobel, creating a leading dairy cooperative.

FrieslandCampina, whose brands include Yazoo and Chocomel, said the merger will provide the foundation for a future-oriented organisation that has dairy front and centre for member dairy farmers, employees, consumers, and customers.

Keep ReadingShow less
Retail Shoplifting. Man Stealing In Supermarket
Photo: iStock

Home Office reaffirms commitment to abolish £200 shoplifting threshold

The UK government has pledged stronger measures to combat anti-social behaviour and shoplifting, which it acknowledges as serious crimes that disrupt communities and harm businesses.

Addressing a House of Lords debate on Monday, Home Office minister Lord Hanson detailed plans to abolish the controversial £200 shoplifting threshold and to introduce a new offence for assaults on retail workers.

Keep ReadingShow less
post office store
Photo: Post Office Ltd

Post Office launches wellbeing hub to support postmasters amid rising retail crime

In response to the mounting pressures faced by postmasters across the UK, the Post Office has unveiled a centralised wellbeing platform aimed at simplifying access to support resources.

Post Office said the surge in shoplifting and violent incidents, documented in the 2024 ACS Crime Report, has only intensified the demand for comprehensive support.

Keep ReadingShow less
Independent retailers face mixed outlook for 2025 – Bira
iStock

Independent retailers face mixed outlook for 2025 – Bira

Independent retailers have weathered one of their most challenging years in 2024, with multiple headwinds affecting the sector, according to the British Independent Retailers Association (Bira).

With pressures mounting throughout the year, independent retailers have faced an increasingly difficult trading environment marked by changing consumer behaviour and economic uncertainties.

Keep ReadingShow less