UK inflation: Milk, cheese and eggs push food price rises to 14-year highon September 14, 2022 at 10:35 am

The UK inflation rate has eased slightly although prices are still continuing to rise at nearly their fastest rate in 40 years.

Inflation – a measure of price rises – dipped to 9.9% in the 12 months to August, from 10.1% in July, the Office for National Statistics (ONS) said.

Soaring living costs are eating into household budgets, with prices rising faster than wages.

The Bank of England has said inflation could peak at more than 13% this year.

Falling petrol prices were the main reason the pace of inflation eased.

Petrol prices fell by 14.3p per litre between July and August, while diesel prices also dipped.

Fuel prices have been surging, driven by the war in Ukraine, and moves to reduce Europe’s dependence on Russian oil.

But wholesale costs fell after fears of a recession in the US hit demand for oil.

However, food prices continued to soar in August, partially offsetting the fall in fuel prices.

Food and soft drink prices rose by 1.5% over the month, the largest July to August rise since 1995.

The rise in global food prices following Russia’s invasion of Ukraine has been one of the factors pushing up prices at supermarket tills.

The war has disrupted supplies from the two countries, which are major exporters of goods such as sunflower oil, wheat, and fertiliser.

Inflation is the pace at which prices are rising. For example, if a bottle of milk costs £1 and that rises by 5p compared with a year earlier, then milk inflation is 5%.