UK inflation rises to its highest level since 1982

Britain’s consumer price inflation jumped to 10.1 percent in July to its highest level since February 1982, official data showed on Wednesday, up from an annual rate of 9.4 percent in June, adding to pressure on households.

In a Reuters poll of economists, the increase exceeded all expectations that inflation would rise to 9.8 percent in July.

This month, the Bank of England raised its key interest rate by 0.5% to 1.75 percent, its first increase of half a percentage point since 1995. The bank expected inflation to peak at 13.3 percent in October, when household energy prices will rise as scheduled.

Wednesday’s figures from the Office for National Statistics showed prices rose 0.6 percent in July from June on a seasonally unadjusted basis, while the annual rate of retail price inflation was 12.3 percent, the highest level since March 1981.