UK inflation rises to 10.1% in July, highest since 1982

The cost of living crisis has added to pressure on households as the UK's inflation has gone up to 10.1%.

The consumer prices index CPI showed a rise in July from 9.4% in June, a figure that was last higher in February 1982, according to the Office for National Statistics.

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The reading was higher than the 9.8% forecast by City economists.

The Bank of England predicts that households will come under more pressure this autumn due to a rise in energy bills which will cause inflation to rise above 13%, and cause a long recession as families rein in their spending.