Rishi Sunak warns of tough few months as inflation soars

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The next few months will be tough after it was revealed that prices are rising at the fastest rate in 40 years.

In a speech to businesses later, the chancellor will admit that it will be easy to cut the cost of living for families.

The think tank said the poor were being hit the hardest by the increases in energy bills.

Fuel and food prices are out of control.

The rate of inflation in the UK jumped to 9% in the 12 months to April, the highest level since 1982.

The rate at which prices are rising is called inflation. Milk inflation is 9% if the price of a bottle of milk increases by 9p.

Millions of people saw a 700-a-year increase in energy costs last month, as April's inflation high figure came.

The chancellor will tell businesses that there is no law that can make global forces disappear overnight.

The next few months will be difficult. We will act where we can.

He is expected to call on businesses to increase investment and training in order to grow the economy and help ease the cost of living crunch.

The Office for National Statistics says that three quarters of the rise in inflation in April was due to higher electricity and gas bills.

A higher energy price cap kicked in last month, meaning homes using a typical amount of gas and electricity are now paying more.

The RAC warned on Wednesday that petrol and diesel prices have hit new records.

Wages are falling in real terms while the prices of most other goods and services have risen.

The Institute for Fiscal Studies said that the poor are being hit the hardest by rising prices because they have to spend more on gas and electricity.

According to Retail Economics, the poor are seeing a drop in their discretionary spending budgets compared to this time last year.

The warning lights could not be brighter and the government needed to offer more support to households, according to Citizens Advice.

There are desperate stories behind the figures, according to the chief executive of Citizens Advice.

A mother-of-two, health analyst Cheryl Holmes, said she was trying to keep her living costs as low as possible by spending less on food and clothes.

I have already turned off the lights in each room, set the heating on a timer, and made sure I use a full dishwasher and washing machine because I am running out of ideas.

It seems like there isn't much more that I can do.

The Bank of England warned that the UK could be on the verge of a recession due to the cost crunch, with inflation peaking at over 10% later this year.

People are spending less money and cutting down on car journeys because of high fuel costs. The economy shrank in March.

The Bank has raised interest rates four times since December to try to cool prices, but it has been accused of not doing enough.

The UK has the highest rate of inflation of any G7 country with 9%.

Labour leader Sir Keir Starmer pressed the prime minister to bring in a one-off tax on oil and gas profits to help.

Boris Johnson, who has so far refused to back the idea, said he would look at all the measures needed to help people struggling with rising bills.

He said that the government was not in favor of higher taxation.

How have prices affected your spending? How has the price hikes affected your small business? You can email haveyoursay@bbc.co.uk.

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