The cost of living increased sharply across the UK during 2021 and 2022. The annual rate of inflation reached 11.1% in October 2022, a 41-year high, before easing in subsequent months. It was 7.9% in June 2023.
High inflation affects the affordability of goods and services for households. This briefing gives an overview of rising prices, particularly food, energy, and fuel prices, including the effect of the conflict in Ukraine. It outlines Government support as well as how rising prices, interest rates and other policies are affecting household budgets.
Consumer prices, as measured by the Consumer Prices Index (CPI), were 7.9% higher in June 2023 than a year before, down from 8.7% in May. After several months of inflation being above expectations, the June figure came in below economists’ forecasts of 8.2%.
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