Petrol costs push prices up at fastest rate for 40 years

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Higher petrol and food costs are driving up prices at the fastest rate in more than four decades.

In the 12 months to June, UK inflation rose to 9.4% from 9.1% in May.

The rising cost of living means many are struggling with bills and turning to food banks, which is why unions are calling for pay rises.

According to the Bank of England, inflation will go up this year.

The rate at which prices are increasing is called inflation. Milk inflation is 5% if the price of a bottle of milk goes up by 5p.

The war in Ukraine and moves by the European Union to reduce its dependence on Russian oil have caused fuel prices to go up.

The average family car costs more than £100 to fill up. The AA said this week that lower wholesale costs of fuel were leading to cheaper prices at the pumps.

Food prices have gone up and supermarket bills are going to go up by an average of £454 this year, according to a research firm.

Grant Fitzner said that inflation was at its highest point in more than four decades.

Fuel and food prices drove the increase in June.

The Chancellor said that the government was working with the Bank of England to keep inflation under control.

He knows how hard it is for people in the UK to deal with higher prices.

The boss of the Bank of England has said that the bank could raise rates by as much as 5% in August.

Interest rates can be put up to try to slow the rise in prices. The goal is to increase the cost of borrowing so that people can save more.

Andrew Bailey, the Bank's governor, said that a rise from 1 2.5% to 1.75% will be one of the options on the table.

Some economists don't think higher rates will stop inflation because of factors such as the war in Ukraine and the impact of Covid.