UK inflation soars to 9%, the highest level in more than 40 years

theguardian.com:

UK inflation soared to 9% in April – its highest level for more than 40 years – as the rising cost of gas and electricity pushed household energy bills to record levels.

The escalating cost of food and transport also contributed to the rising cost of living, deepening the crisis affecting millions of low and middle-income families.

The latest data from the consumer prices index shows a marked increase from March, when the rate was 7%, and February, when it was 6.2%. It will fuel demands for the chancellor to step up help for the most vulnerable with a new package of support.

Rishi Sunak has indicated he may offer further measures to boost the incomes of those on the lowest pay, although it is understood the cabinet is split over how to fund the billions of pounds that campaigners say are needed in extra subsidies or welfare payments, with some favouring a windfall tax on oil and gas companies.

Businesses in industries affected by an acute shortage of workers have complained that higher wages have also become an important factor in pushing up prices.

Labour market figures released on Tuesday showed that average total wages increased by 7% in March, pushed up by bonus payments to staff and consultants working in the finance, IT, construction and professional services sectors.

However, income growth has not been evenly distributed. The average pay rise without bonuses was only 4.2%, hitting millions of workers with a fifth consecutive month of falling real wages.

A steep fall in the value of the pound on foreign exchange markets has also increased the cost of imports. Sterling has slumped since last month, from more than $1.30 to $1.24 after hitting $1.22 last week.

More details to follow …