The cost of living is increasing again at its fastest rate in 40 years. The rising prices of food and energy are the main causes.
What does inflation?
Inflation is the increase in the price of something over time.
For example, if a bottle of milk costs £1 and it goes up to £1.05 a year later, then milk inflation is 5%.
Why are prices rising so fast?
Increased energy prices are a key reason things are getting more expensive. Demand for oil and gas increased because of the end of Covid restrictions. However, the war in Ukraine meant less was available from Russia.
The war in Ukraine also led to food prices going up, by reducing the amount of grain available and pushing up costs.
It hit its highest level since April 1980, with store cupboard staples such as bread, pasta, butter, and eggs all seeing a big increase.
Are wages keeping up with inflation?
