As we've been reporting, inflation has risen to 10.1%. We're all experiencing this already - in the higher prices we're paying for basic goods, from buying loaves of bread to boiling the kettle.

Inflation is also looked at when employers consider pay rises, and when the government considers increasing state pensions and benefits.

Here's a look at how that figure compares with previous years.

Reacting to this morning's inflation figures, which show the cost of living has gone up to 10.1%, Labour Shadow Business Secretary Jonathan Reynolds says the double-digit inflation "speaks for itself".

"People will know when they buy cereal, when they buy milk, they can see what this means for their lives," he tells the BBC.

"Obviously a lot of the real spike in inflation does come from the war in Ukraine and Russia's aggression there," Reynolds says.

"But what you need from the British government at a time like this, is obviously first of all, don't blow the economy up needlessly, as we saw with the mini-budget, and the changes that have now taken place over what has been a pretty shocking and disgraceful three weeks.

"We're facing a lot of transition in the economy... And what this means for the government is very, very real," he adds.

"I don't see from the government a plan for that."

Image source, Getty Images

Let's look again at how inflation works.

Inflation is the increase in price of something over time.

For example, if a loaf of bread costs £1 one year and £1.10 the next year then that would mean bread inflation is 10%.

In the UK, this is worked out by the Office for National Statistics, which notes the prices of hundreds of everyday items, known as the "basket of goods", external.

The ONS releases its inflation figures each month, showing how much these prices have risen since the same date last year. This is known as the Consumer Prices Index (CPI).

Every month a figure is released, estimating how much prices are rising overall - it was 10.1% in the 12 months to September, up from August's 9.9% and returning to the same rate as in July.

But the Bank of England has warned inflation could top 13% this year, and is expected to keep raising interest rates to try to control it.

You can read more about inflation here.

Bank will be concerned about core inflation risingpublished at 07:25 British Summer Time 19 October 2022

07:25 BST 19 October 2022

Faisal Islam
Economics editor

The Consumer Prices Index ordinarily sets a baseline for the rise in the state pension, and benefits and tax credits.

That was government policy in June, pointing to 10% rises.

It is unclear if that is still the case, or if the government will seek to save many billions, by uprating payments by a lower level, for example by the much lower rise in wages.

In the year to September, food prices were up 14.5%, household services up 20.2%, and goods inflation in total was 13.2%.

Petrol prices fell, however, helping limit the rise.

In a sign that will concern the Bank of England, core inflation which strips out the most volatile measures was up 6.5%, up from August.

Inflation is no longer expected to reach over 15% thanks to the energy support to households offered by the government.

But now that support is due to end earlier in April, there could be another leap up in spring, depending on what happens in market energy prices.

Since the government announced its row back on most of its mini-budget, expectations of just how high the Bank of England will raise base rates have slowed a little.

But the Bank will be keeping a careful watch on todays figure for signs that inflationary pressures are spreading.

Image source, Getty Images

Chancellor Jeremy Hunt has responded to the inflation figures, saying the government will prioritise helping the most vulnerable.

He said: “I understand that families across the country are struggling with rising prices and higher energy bills.

“This government will prioritise help for the most vulnerable while delivering wider economic stability and driving long-term growth that will help everyone.

"We have acted decisively to protect households and businesses from significant rises in their energy bills this winter, with the government’s energy price guarantee holding down peak inflation.”

Food prices continue to drive inflation risepublished at 07:12 British Summer Time 19 October 2022

07:12 BST 19 October 2022

Image source, Getty Images

As with last month, food and non-alcoholic drinks made the largest upward contribution to the change in the annual inflation rate in September 2022, the Office for National Statistics (ONS) says.

Food and non-alcoholic beverage prices rose by 14.6% in the 12 months to September 2022, up from 13.1% in August.

The largest upward effects came from bread and cereals, meat products, and milk, cheese and eggs, where prices rose between August and September 2022, but fell between the same two months in 2021.

The continued fall in the price of petrol and diesel made the largest downward contribution to the change in the rates, the ONS says.

Inflation figures a headache for the governmentpublished at 07:10 British Summer Time 19 October 2022

07:10 BST 19 October 2022

Nick Eardley
Chief political correspondent

The inflation figures this morning create a headache for many households. But they’re a headache for the government, too.

Earlier this year, before Liz Truss was prime minister, the plan was to increase benefits by the rate of inflation.

Truss herself had promised to increase pensions by the rate of inflation, too.

But there is a massive spending squeeze coming to plug the gap in the national finances. So can the government afford either?

No 10 has refused to commit to fulfilling its promises on the state pension.

There have been no commitments on benefits either.

The inflation figure for September has returned to July's high of 10.1%.

This set a 40-year high because the last time it had gone over 10% was in February 1982 when it reached 10.2%.

The latest inflation rate is slightly higher than analysts were predicting.

Image source, .

UK inflation is 10.1% in the year to September, according to the Office for National Statistics., external

The figure is up from 9.9% in August.

We're expecting the latest inflation figures for the year to September in the next few minutes.

As we've been reporting, in the 12 months to August 2022 the figure was 9.9% - meaning things that were priced £1 in August 2021 would cost almost £1.10 at the same time the following year.

Economists think inflation could now be back in double figures because of rising food prices.

But we'll find out shortly when we bring you the inflation announcement - along with analysis of what it means.

Image source, Getty Images

Energy bills are one of the biggest contributors to inflation currently, as oil and gas prices remain at elevated levels in part due to the war in Ukraine.

Russia is one of the largest exporters of oil and gas but as countries have moved to reduce their reliance on Russian imports, demand for other producers has risen, leading to higher prices.

The war has also contributed to increases in petrol, diesel and food prices.

Russia and Ukraine are some of the biggest producers in agriculture and food globally and the invasion and subsequent sanctions have disrupted supplies.

There have also been significant increases in the costs of raw materials, household goods, and furniture, and in the hospitality sector, including restaurants and hotels.

And higher interest rates are making mortgage payments more expensive for some homeowners.

Read more here.

UK inflation is likely to remain at a similar level to last month when the figure is released at 07:00, an economist has predicted.

Last month, inflation was 9.9% - close to a 40-year high.

Anna MacDonald, fund manager at Amati Global Investors, told BBC Radio 4's Today programme: "They're still going to be about the level they were last month. The consensus is going for 9.9% so it's still considerably higher than the Bank of England would want it to be."

The Bank's target inflation rate is 2%.

Asked if she thinks the Chancellor Jeremy Hunt will announce ways to raise money using windfall taxes, she says "it appears so".

She adds there are noises that windfall taxes on oil and gas could be extended beyond 2025.

As we're talking about inflation this morning, let's remind you how it all works.

Inflation is the increase in price of something over time.

For example, if a loaf of bread costs £1 one year and £1.10 the next year then that would mean bread inflation is 10%.

In the UK, this is worked out by the Office for National Statistics, which notes the prices of hundreds of everyday items, known as the "basket of goods", external.

The ONS releases its inflation figures each month, showing how much these prices have risen since the same date last year. This is known as the Consumer Prices Index (CPI).

Every month a figure is released, estimating how much prices are rising overall - it was 9.9% in the 12 months to August, down slightly from July's 10.1%.

But the Bank of England has warned inflation could top 13% this year, and is expected to keep raising interest rates to try to control it.

You can read more about inflation here.

Image source, .

Over the course of today we’ll be reporting from Sunderland in north-east England as part of our special cost of living coverage.

Sunderland has higher unemployment levels compared to the rest of the UK and workers there earn less than people in other parts of the country.

We’ll be hearing from households, businesses and families about how the rise in living costs is affecting them.

As this crisis continues, BBC News will be across the UK, talking to people about how they are coping with the financial pressures we’re all facing, and providing support and advice on saving money from our experts.

You’ll be able to follow this across the BBC - whether that’s here on the website, on BBC Breakfast and the News Channel, or on Radio 5 Live and Radio 1’s Newsbeat.

Later we’ll bring you coverage of a special programme hosted by Nicky Campbell exploring issues and solutions - you’ll be able to watch that at the top of this page.

Image source, .

Kevin Peachey
Cost of living correspondent

Image source, Getty Images

Energy, food and fuel dominate people’s concerns about the rising cost of living, according to the survey for the BBC.

But all those areas of spending do offer some people some opportunities to lower consumption and costs.

Not everyone has the option of delaying putting on the heating, but nine in 10 of those asked in the survey planned to try it.

Charities and consumer groups have stressed the benefits of batch cooking, taking public transport when possible, and air drying clothes rather than always putting on the tumble dryer.

They do say, however, that public action needs to be backed up with government financial support for those most in need.

Image source, Getty Images

As we’ve been reporting, key data on inflation and how that will have a knock-on effect for the state pension and benefits will be published later.

It comes as a survey carried out for the BBC by Savanta ComRes reveals increasing concern about the squeeze on our finances.

The survey was carried out earlier this month before Chancellor Jeremy Hunt reversed some tax cuts, said support on energy bills would be limited for some and warned of further government spending cuts.

• 85% of those we asked tell us they are worried about the rising cost of living - that’s up from 69% from a similar survey in January
• More than half (56%) say they expect their financial position to worsen in the next six months. It was 30% in January
• Nine out of 10 people we spoke to in the first week of October say they’re delaying putting on the heating

Around two-thirds who took part in the poll say that government support was insufficient.

Read more here.

Looking around the shops over the last year, it’s been pretty obvious prices are rising fast.

At 07:00 we’ll get the latest figure on just how fast that is happening, when fresh UK inflation numbers are released.

August’s figures dipped slightly to 9.9% from July's 10.1%, but some economists have warned it’s likely to rise again today due to increases in the cost of food, clothing and services - which include things such as shops and restaurant prices.

To get an idea of how it’s effecting everyone, we’ve been speaking to people in Sunderland to see how they’re coping in the current financial climate.

Meanwhile, as the PM continues to battle to regain her authority over her party and embark on a new economic course, she’ll be in the Commons at midday to face questions from MPs at PMQs.

Stay with us for all the latest news lines.

Good morning. The rising cost of living was already worrying all of us before the economic turmoil of the last few weeks.

With the current level of energy bill support only guaranteed until April of next year, and interest rates expected to rise further, we know many of you are looking for help to navigate this crisis.

As part of our ongoing cost of living coverage, we’ll be hearing from people in towns and cities across the UK about how they are coping - and providing support and advice from our experts.

Today we are in Sunderland - and we’ll be bringing you stories from there throughout the day.

Stay with us.