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The cost of living crisis is worsening in Britain

Inflation in the country hit a new 40-year high in May, official data shows

The UK’s consumer price index (CPI) rose from 9% in April to 9.1% last month, a level not seen since February 1982, according to the Office for National Statistics (ONS). This is the highest rate of the G7 group of rich countries.

The data showed that inflation is fueled by soaring food and energy prices. The ONS said the prices of food and soft drinks rose at the fastest annual rate since 2009, with the most dramatic increases seen in the cost of bread, cereals and meat.

Housing and household services, mainly electricity, gas and other fuels, as well as transport, were also behind the inflation rate.

Soaring petrol and diesel prices have added pressure on motorists and businesses, with fuel costs rising 32.8% over the past year – the biggest annual increase since 1989 .

READ MORE: More than 90,000 civil servants in the UK could get the ax

“Disappointingly, the cost of living crisis will not be a short-lived affair, and it ultimately leaves the Bank of England stuck between a rock and a hard place,” portfolio manager at Quilter Investors, Paul Craig told CNBC.

Last week, the Bank of England forecast the CPI’s measure of inflation to hit 11% later this year, amid soaring gas and electricity prices.

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