Rampant inflation hits a 40-year high

Rampant inflation hits a 40-year high

Inflation surged to a 40-year high in April as a jump in energy prices and soaring food costs squeezed household finances. The rate of consumer inflation jumped to 9pc last month, according to the Office for National Statistics (ONS), the highest level since Margaret Thatcher was prime minister in 1982. Economists said rampant inflation, which is expected to peak at more than 10pc later this year, now threatens to cause a recession , while increasing pressure on the Bank of England. Inflation is currently running at four and a half-times the Bank's 2pc target . Rishi Sunak, the Chancellor, is also under renewed scrutiny amid calls for further household support after the Treasury implemented a national insurance tax raid on workers’ pay packets and businesses. Electricity prices are up by more than half compared with the same time a year ago after changes to the energy price cap in April, the ONS said, with gas up by more than 95pc. At the same time drivers are being hit hard , with petrol up by almost 29pc and diesel up more than one-third. Grant Fitzner, chief economist at the ONS, said: “Inflation rose steeply in April, driven by the sharp climb