What 9 per cent inflation means for you as rate hits 40-year high in biggest squeeze on cost of living for decades

With inflation set to hit a new 40-year high of 9 per cent, the cost-of-living crisis is tightening its grip on households across Greater Manchester. Amid soaring energy and food prices, families are struggling to make ends meet with many relying on food banks to get by.

The latest inflation figures come a fortnight after the Bank of England raised interest rates to a 13-year high of 1% and warned the country could be heading for a recession. Fuel prices are also at record highs, and the cost of your supermarket shop has soared in recent months.

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But what's causing the price hikes, which items are going up and is it going to get worse?

Why is inflation so high?

Several things are contributing to rising inflation. Prices in the UK began to increase in 2021, when coronavirus restrictions were eased and households started spending again. "Economies around the world, including in the UK, opened up after Covid restrictions eased. And then people naturally wanted to start buying things again," explains the Bank of England.

"But businesses selling some of those things couldn’t get enough of them to their customers. This caused prices to rise - especially for goods coming from abroad."

The Russian invasion of Ukraine earlier this year has also caused prices to rise, particularly energy and food. Lockdowns in China are making it harder to import some goods to the UK, while Brexit has also caused supply issues which have forced prices up.

Dr Kevin Albertson, professor of economics at Manchester Metropolitan University Business School, says the global economy is experiencing a 'double whammy' of the consequences of the the