Inflation in Britain Jumps to 10.1 Percent, Pushed Higher by Food Prices

In July, Britain's consumer prices rose at the fastest pace in more than 30 years.

The first double-digit inflation in four decades was caused by rising food prices. The Office for National Statistics reported on Wednesday that the inflation rate increased from the previous month. The rate of inflation increased from June to July.

Between June and July, food prices increased 2.3 percent, the fastest monthly increase since 2001, with notable increases in the prices of staple foods like bread, cereals, milk, cheese and eggs.

Inflation isn't expected to peak until autumn when the cap on household energy bills is reset According to the Bank of England, high energy prices could cause the economy to go into a long recession.

The rising rate of inflation is sounding an alarm about a cost of living crisis as the price of more goods increases. The average energy bill could go up to 3,500 pounds a year in October, triple what it was last year. The central bank is trying to slow spending as it tries to tackle inflation which is five times higher than its target.

Wages are growing twice as fast as they did a decade ago, but they aren't keeping up with prices. Excluding bonuses, pay fell by 3 percent in the second quarter compared with a year ago. It was a new low.