Spiralling food and fuel prices across the world hit home this week as the Bank of England announced that the government’s preferred inflation measure had climbed above the 3 percent barrier.
Mervyn King, governor of the Bank, announced on Tuesday of this week that the CPI inflation measure had risen from 3.0 percent in April to 3.3 percent in May.
The RPI measure – which includes housing costs and better reflects rises in the cost of living for ordinary workers – also rose to 4.3 percent from 4.2 percent the previous month.
The biggest contributor to the higher inflation figures was the rising price of food.
Food prices have been rising across the world as financial speculators have moved into commodity markets.
Oil prices are also on the rise, leading King to predict that CPI inflation would remain above 3 percent until well into next year and may hit 4 percent later this year.
Working people are badly hit by the rising prices. This will intensify Gordon Brown’s political crisis and fuel the already widespread anger over low pay.