The increase in the cost of living accelerated to 10.1% in September, new inflation data has revealed this morning.
Inflation - a measure of price rises - returned to the 40-year high it hit in July, according to the Office for National Statistics (ONS).
As with last month, food and non-alcoholic drinks made the largest upward contribution to the change in the annual inflation rate in September 2022, has to September 2022, up from 13.1% in August.
The largest upward effects came from bread and cereals, meat products, and milk, cheese and eggs, where prices rose between August and September 2022, but fell between the same two months in 2021.
The continued fall in the price of petrol and diesel made the largest downward contribution to the change in the rates, the ONS says.
Government vows to protect vulnerable
Chancellor Jeremy Hunt has responded to the inflation figures, saying the government will prioritise helping the most vulnerable.
He said: “I understand that families across the country are struggling with rising prices and higher energy bills.
“This government will prioritise help for the most vulnerable while delivering wider economic stability and driving long-term growth that will help everyone.
"We have acted decisively to protect households and businesses from significant rises in their energy bills this winter, with the government’s energy price guarantee holding down peak inflation.”
Energy bills U-turn to push inflation even higher
Meanwhile, the UK Government U-turn on the energy price cap for households risks pushing inflation even higher in the spring, economists have told The Times.
Mr Hunt’s plan to replace the universal price reduction in gas and electricity, which amounted to a £2,500 yearly cap based on average household usage, with a more limited scheme from April is expected to push inflation several percentage points above present forecasts.
James Smith, developed markets economist at ING, the financial services company, said inflation would be about three percentage points higher over much of 2023 if the government were to revert to the energy regulator’s price cap.
And if energy bills rise above £4,000 a year, inflation will exceed 10%, Fabrice Montagné, the chief UK and senior European economist at Barclays, said.