Image source, Joanne

Joanne is a single mum living in Rochdale. She says her food bill has gone up by a third and her energy bills have doubled, forcing her to skip meals.

"I’ve spent the last six to nine months reducing what I eat so I don’t have to reduce what my son eats," she tells our colleagues at BBC Radio 5 Live.

“It’s a painful thing skipping a meal, it’s a painful thing not putting your heating on."

She says she has to think about every decision she makes in terms of the potential financial implications.

“There’s no unconscious living in our household… I can’t penny pinch anymore.”

Faisal Islam
BBC Economics Editor

Image source, Getty Images

April's astronomical rise in inflation is no less shocking, even given it was predicted.

As the Bank of England Governor Andrew Bailey has said, these sorts of rises hit the poorest the hardest. April's 9% rise is an average across the population.

The really painful issue is that this rate is on course to get higher over the year. And only this week, Bailey acknowledged that there was "not a lot" the Bank could do about four-fifths of the anticipated rise, imported from globally rising prices of energy and food.

The question now is how quickly will this come down from these highs over the next two years. Economics is a prisoner of geopolitics here. But as inflation gets to double digits, workers, consumers and companies are more likely to start to factor a big fat round number in their expectations of price rises into the future.

So numbers of this magnitude create acute social issues. When the price rises are so widespread and visible in the energy direct debits and prepayment meters of every single household, it also creates a macroeconomic problem, draining the economy of spending power, and slowing it down to a halt, or worse. So the government will face pressure to do more.

And when this is hitting the whole world at the same time, the economy faces territory not seen for a generation.

Britain now has the highest inflation rate of the EU's five biggest economies.

And it will almost certainly top the G7 group of nations too. Even though Canada and Japan are yet to report figures for April, neither are likely to match Britain's price growth.

Here are the figures for inflation in April over 12 months for the G7, using each country's headline measure:

• UK 9%
• USA 8.3%
• Germany 7.4%
• Canada April data not yet released but was 6.7% in March
• Italy 6.2%
• France 4.8%

• Japan's data will be out on Friday and is expected to be 2.1%

A large proportion of the rise in prices in the last month is down to the increase in the energy price cap, according to the Office of National Statistics.

About three-quarters of the increase in inflation "came from utility bills", says the ONS's chief economist.

Grant Fitzner says the steep rise in April was "driven by the sharp climb in electricity and gas prices as the higher price cap came into effect".

The ONS has estimated the rise is the highest since 1982.

Read more about why energy prices are so high here.

Image source, PA Media

Soaring inflation figures show the need for the poorest households in the UK to be given targeted support by the government, a think tank which focuses on living standards says.

Why are poorer families worse affected?

Those on lower incomes spend a greater share of their money on energy bills. And because soaring energy prices are having the greatest impact on inflation, this is putting the biggest squeeze on families with less money to spend.

"These recent drivers of inflation mean that lower-income families are facing the most severe cost pressures, with their inflation rate already hitting double digits," said Jack Leslie, a senior economist at the Resolution Foundation.

His organisation estimates the poorest households are facing an actual inflation rate of 10.2%. As we reported a little earlier, another think tank estimates an even higher figure for the poorest 10% of households.

What could be done?

Leslie said "nobody knows" how long the pressures will last or how workers will respond, "but one thing is certain - the government must provide further targeted support for those lower-income families at the sharp end of this crisis".

The Resolution Foundation argues support could be given through an increase in Universal Credit or by increasing the scale and scope of the warm home discount scheme to reduce energy bills.

Chancellor Rishi Sunak says the government "stands ready to take further action".

'Warning lights could not be flashing brighter'published at 10:19 British Summer Time 18 May 2022

10:19 BST 18 May 2022

Kevin Peachey
Personal finance correspondent

This is official, national confirmation of what everyone can see in their own personal finances.

Price rises are accelerating, and energy bills are a huge factor in that trend.

Bank of England forecasts suggest we are not yet at the peak. Energy bills will rise again in October.

In turn, inflation will hit higher levels by the end of the year.

Citizens Advice says "the warning lights could not be flashing brighter" than they are now.

But many will argue those lights will be blinding when we get to the colder, darker nights of winter.

For now, debt charities say anyone in difficulty paying their bills should seek help early, rather than face a more acute and complex financial problem later in the year.

Image source, Gett

There is a packed day ahead in the House of Commons and it seems unlikely MPs will let the occasion of Prime Minister's Questions pass without bringing up the latest inflation figures.

As well as the questioning of Boris Johnson at 12:00 BST (11:00 GMT), MPs will carry on debating the Queen's Speech - the government's agenda for the coming session - with a focus on economic growth.

Labour is going to use the debate to reiterate its call for an emergency budget, focused on tackling the cost of living crisis, and it will force MPs to vote on its plan.

But with the government's large majority, it seems unlikely Labour's motion will pass.

Image source, PA Media

As we've been reporting, rising inflation in the UK and around the world is being driven by the rising cost of oil and gas, worsened by the war in Ukraine.

Experts are warning that this means rising prices will hit poorer households harder, because they spend more of their income on energy bills.

The Institute for Fiscal Studies, a leading economic research group, estimates those in the bottom 10% for income face an inflation rate of 10.9%, while for the richest 10% inflation was 7.9%.

Heidi Karjalainen, an IFS research economist, said the Ukraine war was likely to push up the cap on household energy bills even further later this year.

She added this meant we are likely to be in a prolonged period where the inflation rate for poorer households remains "even higher than the headline figures would suggest".

Image source, Reuters

The Chancellor has so far resisted opposition calls for an emergency budget, saying he would look at providing more support in the autumn, when the price cap - which rose by 54% in April - is expected to go up again.

Responding to the latest inflation rise today, he says:

The rise in inflation has prompted further calls from the opposition for the government to do more to help people.

The news is "a huge worry for families already stretched", says Shadow Chancellor Rachel Reeves.

She says Labour plans to "force a vote" for an emergency budget today and "for a plan for growth".

Image source, Getty Images

Foreign Secretary Liz Truss was on the radio first thing this morning, and said the rise in inflation was a "very very difficult situation" caused by a combination of the fallout from the pandemic, supply chain issues and the war in Ukraine.

She said the government has "put together a billion-pound fund to help households in need" and that the Chancellor is "looking at what more can be done in areas like tax and energy".

Truss declined to comment on whether Chancellor Rishi Sunak would be announcing financial support to help people deal with rising energy bills.

She said that a "low-tax economy" was key to economic growth but would not comment specifically on the government's move to raise National Insurance, which rolled out last month.

Image source, Getty Images

Inflation is the rate at which the cost of things goes up - it's measured using a percentage.

For example, if a loaf of bread costs £1 one year and £1.09 the next year, then that's an annual inflation rate of 9%.

Prices are now rising by 9% a year in the UK - the highest rate for 40 years. The Bank of England has warned inflation might reach 10% within months.

When prices are rising much faster than wages, it becomes harder for people to afford everyday things.

You can read more about inflation here.

So inflation is at its highest in 40 years - here's what that looks like.

The main factors in the increase were rises in the cost of electricity, gas and other fuels.

Good morning, and welcome to our coverage of today’s reported rise in inflation.

Prices are rising at their fastest rate for 40 years as higher energy bills hit millions of households.

Inflation, the rate at which prices rise, has jumped to 9% in the 12 months to April, up from 7% in March, external, the Office for National Statistics says.

We’ll be bringing you the latest updates on this story, including reaction from politicians, businesses and what it means for household bills and the cost of living.

At midday, we'll cover Prime Minister’s Questions, where this subject is expected to dominate.

And we'll try and explain why this has happened, and what can be done to help those struggling.