MILK UP BY 40%

Surging prices of basics are hitting shoppers hard in the pocket

THE price of milk has leapt by a shocking 40 per cent in the past year, official figures show.

The average price of a pinta was 43p last summer but has risen to 62p now. Cheddar cheese has gone from a typical £6.20 a kilo to £7.53 – up 21 per cent, the Office for National Statistics said. To compound the misery, an average white sliced loaf of bread has risen 20p to £1.26, while a 500g tub of spreadable butter now costs 30 per cent more, up from £3.20 to £4.18.

It came as the ONS confirmed that food and drinks prices overall jumped more than 13 per cent in August compared with the same month last year – the biggest rise in 14 years.

It has been driven by higher energy, transport and labour costs.

ONS data showed the rate of inflation eased slightly last month, from a 40-year high of 10.1 per cent in the year until July to 9.9 per cent.

The first dip in 10 months followed a fall in petrol and diesel prices from record highs – but pump prices are still nearly a third up on a year ago.

It comes as the Bank of England is expected to announce a 0.5 percentage point rise in its base rate – to 2.25 per cent – next week.

It would hit millions of borrowers but improve rates for savers – if providers pass it on.

TUC general secretary Frances O’Grady said: “Inflation is still very high and hitting family budgets hard. The Chancellor’s mini budget next week should use the power of government to help with surging costs this winter.”

Jack Leslie of think tank the Resolution Foundation said: “However, high inflation is set to be with us for some time, particularly for people on low incomes who are hit hardest by high prices.”

Next month’s CPI inflation measure is likely to determine how much the state pension will rise by in April.