Inflation inflation rate in the United Kingdom has reached its highest and remaining over a year. This hot inflation isn’t letting up, putting pressure on families across the country. Today, on Wednesday, the Office for National Statistics (ONS) released that data. As of last month, they announced that the core rate of inflation held firm at 3.4% for the past year ending in May. That equated to a double-barreled successively rapid rise in prices pace, as the overall rate of inflation in May — 4.9 percent — matched April’s rate to the tenths place.
Food inflation is a tremendous stressor at this moment. It first jumped above 4% in March and has continued to rise for the past three months, reaching 4.4% in May—the highest level since February of 2022. The damage done by food prices was partially offset by a sharp drop in travel costs throughout the month. The unexpected offset has provided relief, but Americans are still facing significant increases in the costs of vital goods.
Chocolate prices skyrocketed at the highest rate ever in the month of May. Together, all three provisions make this increase one of the most significant in recent memory. With the ONS reporting chocolate prices up 17.7% in the year to May, chocolate buyers have found the news bitter. That is the highest increase since record-keeping started in 2016. Multiple dynamics have fueled this increase. Adding to that challenge, chocolate stocks plunged to record lows earlier this year, and serious flooding and weather extremes this year have crippled cocoa cultivation in major belts like Ghana and Ivory Coast.
Ghana and Ivory Coast, two of the world’s largest cocoa producers. Unfortunately, they were hit by some terrible weather that took a serious toll on their cocoa crop. These challenges have driven up chocolate prices, which have become a poster child for the larger inflationary crisis that has been hitting consumers.
Economists are watching these trends like hawks. Ruth Gregory, the deputy chief economist at Capital Economics, put this all into a troubling but understandable perspective. She warned that firms could be passing on the cost of increasing employer National Insurance to their consumers, adding further inflationary pressure to food prices.
Chancellor Rachel Reeves addressed the economic situation, stating, “This government is investing in Britain’s renewal to make working people better off.”
Conservatives haven’t sought to downplay the consequences of inflation, with Shadow Chancellor Mel Stride saying that December’s inflation figures were “deeply worrying for families.” Specifically, he criticized the government’s response. He continued, “Labour’s decisions to hit jobs with stealth taxes and increase borrowing is killing growth and driving inflation, worsening the cost-of-living crisis on essentials across the board.”
