Britain’s cost of living rising despite predictions it would come down
The rate at which prices in Britain are rising has dipped slightly, but remains high despite predictions it would come down further, The BBC said in a report.
Soaring prices for bread, cereal and chocolate have helped push food prices to a 45-year high. To help slow prices, the Bank of England has raised interest rates 12 times in a row, to 4.5%.
The soaring cost of food and energy have been key drivers of inflation.
Oil and gas were in greater demand as life got back to normal after Covid. At the same time, the war in Ukraine meant less was available from Russia, putting further pressure on prices.
The war has also reduced the amount of grain available, pushing up global food prices.
This effect was compounded in the UK in February by a shortage of salad and other vegetables, which took food inflation to a 45-year high.
Pay increases for many people aren't keeping up with rising prices.
The average weekly salary in the UK, excluding bonuses, was £603 in April, up from £598 in March, according to official figures.
Throughout 2022, the average salary rose by nearly £3 a month.
But when you take inflation into account, the average salary actually fell by 1.3% in the three months to April, compared with the same period the year before.
Unions say wages should reflect the cost of living and many workers have been striking over pay.
However, the government argues big pay rises could push inflation higher because companies might increase prices as a result.