LONDON: In Britain, the cost of living increased once more in July, further straining already-stressed households in the country. The Consumer Prices Index (CPI) inflation rate last month was 10.1%, above expectations, according to the Office for National Statistics (ONS).

The increase was mainly down to food prices and staples including toilet rolls and toothbrushes, the ONS said. As per  Pantheon Macro-economics average of analyst predictions, the measure was predicted to reach 9.8%.

According to ONS calculations, it is the largest increase in the cost of living since February 1982, when the CPI hit 10.4%. Inflation in June was 9.4%, thus this is a significant increase.

Grant Fitzner, the chief economist for the ONS, said: "A wide range of price increases brought inflation up again this month. Significant increases in food prices, particularly for bakery goods, dairy, meat, and vegetables, were also seen in higher takeaway prices.

"Price increases for other essentials like pet food, toilet paper, toothbrushes, and deodorants all contributed to the increase in inflation in July. "Due to rising demand, package holiday prices jumped after declining at the same time last year, and plane rates also went up.

"The price of metals and food, respectively, drove the growth in the cost of both raw materials and goods leaving manufacturers." August is predicted to see a slight decline in inflation, but predictions indicate that when the energy price cap is raised once more in October, inflation might soar to 13.3%.

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