4.7% inflation surges to 16yr high; CREDIT CRUNCH CRISIS.Byline: By CLINTON MANNING INFLATION rocketed to 4.7 per cent last month - its highest since 1992. But grimmer figures for hard-pressed households came with news that food inflation is now running at 14.5 per cent - the steepest rate in 20 years. The soaring soaring: see flight; glider. soaring or gliding Sport of flying a glider or sailplane. The craft is towed behind a powered airplane to an altitude of about 2,000 ft (600 m) and then released. cost of groceries has added pounds 1,000 a year to the typical family's bill. Potatoes are up a staggering 57 per cent in just 12 months, bread 46 per cent and butter 41 per cent, August statistics show. Experts fear worse to come as the numbers do not yet take into account August's wet weather that hit harvests and will send prices spiralling even further. Yet a year ago food bills were going up by just 2.8 per cent. Tim Newhouse of price comparison website moneysupermarket.com said: "Official inflation figure is at last catching up to the stark reality that people have been aware of for months." And Unison unison, in music, tones identical in pitch produced by two or more parts or voices. In popular usage a vocal composition is said to be sung in unison even though some of the voices are separated from others by the interval of an octave. union boss Dave Prentis Dave Prentis is the current General Secretary of UNISON, the United Kingdom's largest trade union. He was originally elected on 1 January 2001 and was re-elected in March 2005, with 77% of the vote. said vast numbers of hard-working families would face winter hardship because of rapidly increasing food and energy costs. He said: "Millions of public sector workers face a two per cent pay cap and will be forced to make tough choices between heating or eating this winter." Other household necessities now significantly more expensive include eggs, 37 per cent dearer, bacon, 13.5 per cent, and milk 20 per cent. Households will also have to shell out much more for items such as diesel, flour, coffee and beer. Bank of England Bank of England, central bank and note-issuing institution of Great Britain. Popularly known as the Old Lady of Threadneedle Street, its main office stands on the street of that name in London. chief Mervyn King
Mr King's latest letter, published yesterday, put the rise down to "sharp, largely unanticipated increases in the price of energy and food". He also blamed the weak pound, which has made imports 12 per cent more expensive in just three months, the fastest rise in 20 years. The bank governor admitted inflation was likely to hit five per cent next year. CAPTION(S): A RATE STATE Bank chief's letter |
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