Inflation marches on to 10.1%

Commenting on the ONS July CPI figures published today, Sarah Pennells, Royal London's consumer finance specialist, said:

“The latest UK inflation figure brings more bad news for households as the consumer prices index (CPI) reached a new high of 10.1% in July. With the Bank of England revising its forecast to predict CPI inflation reaching 13% before the end of the year, people will be facing ever tougher decisions about their spending.

“Already spending more to get less, many households have made significant cutbacks because of the rising cost of living, and there’s no sign that this is going to change.

“We’re due to find out in the next few days how much the energy price cap will rise by from 1st October, which will pile further pressure on the budgets for over 20 million households that aren’t on a fixed price tariff.”