INFLATION has jumped once more to a high of 9.4% as household budgets are squeezed even tighter amid a cost of living crisis.

It means the consumer price index (CPI) measure of inflation has hit a fresh 40-year high for June, up from 9.1% in May.

Rates are now at the highest level since since 1982 according to the latest Office for National Statistics figures, piling pressure on the nation's finances.

Experts have warned inflation will only keep rising, as the Bank of England said inflation could hit 11% this year.

Inflation is a measure of how the price of goods and services have changed over the past year.

When it goes up, prices on everyday items and essentials and bills also rise – which means budgets are being squeezed.

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What is inflation and what is the current rate?

Inflation hits 9.1% causing misery for millions – what it means for your finances

Soaring food and petrol prices were the main driver behind the latest inflation figures from the Office for National Statistics (ONS).

Food prices jumped 9.8% in the year to June – the highest rate seen since March 2009.

Milk, eggs and cheese saw some of the biggest price hikes, as well as vegetables, meant and ready meals.

While fuel prices rocketed by an eye-watering 42.3% over the same period- the biggest jump recorded since 1989.

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According to the ONS, average petrol prices stood at 184.0 pence per litre in June 2022, compared with 129.7 pence per litre a year earlier.

Commenting on the latest figures, Chancellor Nadhim Zahawi said: "Countries around the world are battling higher prices and I know how difficult that is for people right here in the UK, so we are working alongside the Bank of England to bear down on inflation."

But experts warned rocketing rates will only continue, deepening the crippling cost of living crisis for millions.

Confederation of British Industry chief economist Anna Leach said rising inflation is "severely eating into strained household incomes".

While abrdn client director Colin Dyer said the nation's finances could be "strained for the sometime", with the amount of spare cash households have leftover at the end of the month "shrinking at some rate".

Food and fuel price rises are not the only bills spiralling – energy costs are expected to hit £3,000 by the end of the year.

While households are seeing transport and housing costs hike too.

More to follow…

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