UK inflation hits 10.1% as cost of living soars

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UK inflation has passed double digits for the first time in over 30 years, as prices continue to rise at their fastest rate in more than four decades.

The Office for National Statistics said that inflation increased to 10.1% in the year to July.

According to the Bank of England, inflation could reach more than 12%.

Food prices went up the most.

It was higher than expected.

Household budgets are being eaten up by soaring living costs.

Getting inflation under control is the Chancellor's top priority.

He said that he understands that times are tough and that people are worried about increases in prices.

"Although there are no easy solutions, we are helping where we can through a £37 billion support package, with further payments for those on the lowest incomes, elderly and disabled, and cheaper energy for everyone in the coming months."