UK inflation surges at fastest rate in 40 years – live updates

UK inflation surges at fastest rate in 40 years – live updates

T he FTSE 100 has faltered at the open after new figures showed inflation has jumped to a 40-year high. The blue-chip index edged marginally into the green at 7,524 points. E d Monk at Fidelity International says  the Bank of England is caught between surging prices and a slowing economy. Today’s figures show the impact of the energy price cap rise, taking inflation to 9pc – a rate that will feel completely alien to most households and pile yet more pressure on already stretched budgets. And, unfortunately, this is unlikely to be the end of price rises. Bank of England governor, Andrew Bailey, warned this week of food price hikes coming down the track and said the central bank is unable to stop inflation hitting double digits later this year.  With wage data showing salaries rising at 4.2pc ,  UK households are feeling themselves getting poorer by the month as prices surge ahead of pay. They will be cutting back on non-essential purchases and many will struggle to find the money needed to keep up with the expense of everyday life. That, of course, adds to the risk of growth slowing, and even of recession this