Britain’s annual inflation rate, as measured by the consumer-price index,
jumped to 10.1% in July,
the first time the country has hit double-digit inflation since 1982. Higher energy costs were the main factor behind rising prices, but transport and food also added to the squeeze on household bills. Calls to freeze the price cap on domestic energy are growing louder. An average household is expected to see its annual bill double to over £4,300 ($5,200) by January. On account of the cost-of-living crunch, real wages fell by 3% between April and June, the most since records began in 2001. |