UK CPI inflation jumps to 10.1%, highest since 1982

British consumer price inflation rose to 10.1% in July, its highest since February 1982, up from an annual rate of 9.4% in June, as the squeeze on households intensifies, official figures showed on Wednesday.

The increase was above economists’ expectations in a Reuters poll for inflation to rise to 9.8% in July, and will do nothing to ease the Bank of England’s concerns that price pressures may become entrenched, Reuters reported.

Earlier this month the BoE raised its key interest rate by 0.5% to 1.75% – its first half-point rise since 1995 – and it forecast inflation would peak at 13.3% in October, when regulated household energy prices are next due to rise.