Summary

  • UK inflation - the rate at which prices are rising - jumps to 9.4% in the year to June

  • Prices are continuing to rise at their fastest rate for 40 years, driven by petrol, energy and food costs

  • Poorer household are being hit harder by rising costs, the Resolution Foundation think tank warns

  • However, the government is confident we will see a "marked improvement" in 2023, a treasury minister says

  • Labour pushes for urgent action from the government, calling for it to take VAT off energy bills

  • We are answering some of your questions on the rising rate inflation rate and the cost of living

  • And, as part of our Counting the Cost of Living series, BBC News will be asking people from towns and cities around the UK how they are coping - and revisiting them over the coming months

  • We're starting today in the Midlands with Derby, hearing from households, businesses and families

Live Reporting

Edited by Nathan Williams

  1. Fuel costs big factor in expected inflation rise

    Ramzan Karmali
    Business reporter

    Petrol stationGetty Images

    The rate of inflation in the UK is widely expected to rise yet again when official figures are announced this morning, with fuel prices being one of the main drivers.

    The official measure of the cost of living, the Consumer Prices Index, is forecast on average to show a rise of 9.3% in the year to June.

    Fuel price increases are likely to be one of the biggest contributors to the rise in the inflation rate in June. According to the RAC, the cost of filling an average sized family car shot up by more than £9 last month as the average price of a litre rose by nearly 17p.

    Rising energy and food prices are also expected to push inflation up from May’s 9.1% reading – already the highest level in 40 years.

    One thing most economists are all in agreement on is that inflation will continue to rise with some predicting a peak of over 11% this autumn when the next likely rise in the energy price cap will kick in.

    One industry analyst has predicted a rise of more than £1,200 a year in October.

    Cornwall Insight said the typical domestic customer was likely to pay £3,244 a year from October for their gas and electricity bills.

  2. Bigger interest rate hikes on the table, says Bank boss

    Andrew BaileyGetty Images

    Despite the expected rises in inflation, the Bank of England's boss has vowed to get it under control and warned bigger interest rate hikes are on the table.

    Andrew Bailey told City leaders yesterday that a 50 basis point rise - from 1.25% to 1.75% - will be one of the options for the Monetary Policy Committee (MPC) when it next decides on rates on 4 August.

    "At the MPC's last meeting we adopted language which made clear that if we see signs of greater persistence of inflation, and price and wage setting would be such signs, we will have to act forcefully," he said.

    You can read more about Bailey's comments here.

  3. Welcome

    Good morning and welcome to our live page covering the latest UK inflation figures - the rate at which prices are going up - which are due to be released at 07:00 BST.

    They're expected to show a rise again, increasing cost pressures on people and businesses.

    In the year to May, prices were going up at the fastest pace in 40 years.