// The rate of inflation rose to 10.1% in September, up from 9.9% in August – a 40-year high
// The largest upwards contribution came from soaring food costs
Inflation rose to 10.1% in the 12 months to September, up from 9.9% in August and returning to a high last seen in July, as the UK grapples with rapidly increasing food prices and high energy costs.
The annual inflation rate returned to its fastest pace since 1982, driven by rising food prices which were the main contributor.
Food prices rose 14.5% last month from a year earlier, the largest annual rise in more than 40 years, according to the Office for National Statistics.
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
In the clothing and footwear division, the annual inflation rate reached 8.5% in September, up from 7.6% in August, while fuel provided the greatest downside pressure.
On a monthly basis, the Consumer Prices Index rose by 0.5% in September 2022, compared with an increase of 0.3% in September 2021.
PwC Industry Leader for Consumer Markets Lisa Hooker said: “The concern for consumers will be that the worst is yet to come. These numbers have yet to take into account the utility price rises from October onwards, and supermarkets have already warned that grocery prices will continue to rise right through until Christmas.”
Our most recent consumer sentiment survey taken less than a month ago already found that one in eight adults is either missing bill and loan repayments or in danger of doing so, and that almost half of households have already cut back on energy usage in the last 3 month. As we enter the critical Golden Quarter for retail and hospitality operators, the fear is that this will cause even more consumers to cut back on their spending.”
Click here to sign up to Retail Gazette‘s free daily email newsletter
