Inflation hits 3.3%

The rate of inflation in the UK has hit 3.3 per cent across the UK, according to the latest data compiled by the Office of National Statistics (ONS).

Last month, the annualised rise in the cost of food stood at 7.2 per cent but this figure is was at 8.7 per cent by the end of May, as the price of meat “spiralled” and that of vegetables “rocketed”.

The data is compiled as part of the consumer price index (CPI), which does not include mortgage rate rises but millions of families are finding it increasingly difficult to become debt free.

According to the ONS, the CPI is an internationally comparable inflation measure and the European average is currently running at around 3.6 per cent.

The rises in inflation are thought to make it unlikely that the Bank of England will offer any comfort to consumers with debt management problems through a cut in the base rate of interest.

Darren Cook, a spokesperson for Moneyfacts.co.uk, said last week that the UK cannot expect to see a return to the days of relatively inexpensive credit for several years.

By Frank Charlton