According to the latest numbers from the Office for National Statistics, inflation has reached its highest level in 40 years as the cost-of-living problem worsens (ONS).
Last month, the rate jumped to 9%, the highest level since similar figures from 1982.
The ONS reported a broad-based increase in prices for ordinary goods and services in April, with the unprecedented 54 percent increase in the energy price cap, which went into effect at the beginning of the month, accounting for a large portion of the increase.
Other key reasons included the highest petrol and diesel prices on record.
Commenting on the data, Rain Newton-Smith, Chief Economist at the Confederation of British Industry (CBI), said:
‘Inflation was always likely to hit hard in April given the energy price cap increase.
‘Looking ahead, inflation is likely to stay high, with a resulting historic squeeze in households’ incomes and a tough trading environment for businesses.
‘It is critical the government explores options to help people facing real hardship now, and support cashflow for vulnerable firms. Stimulating business investment is also crucial, to both plug the near-term gap in growth and to shore up the economy’s potential to withstand future shocks.’