UNIONS warned today that the cost-of-living crisis is “far from over” as Britain’s sky-high inflation is still crippling the country and remains the highest in the G7.

The Tory government was criticised for blaming rising costs on workers’ pay while allowing corporations to fill “their boots with excessive profits.”

TUC general secretary Paul Nowak said families were still running out of food after the latest inflation figures showed CPI and RPI rates had fallen in June to 7.9 per cent and 10.7 per cent respectively.

He said: “Although some prices are rising a little less rapidly, Britain’s cost-of-living crisis is far from over. 

“After 13 years of falling living standards, household budgets remain under intolerable pressure. 

“While the government watches from the sidelines, low-income families are running out of food.”

He cited recent Office for National Statistics (ONS) figures saying that one in 20 families reported running out of food over the past two weeks, urging ministers to provide a “credible plan” to boost growth and create “decent, well-paid jobs” across the country.

The ONS said a record 22.7 per cent fall in fuel prices was the biggest driver behind inflation dropping to its lowest level for 15 months today.

Consumer Prices Index (CPI) inflation, though at its lowest rate since March 2022, is still a long way from the government’s target to halve inflation to 5.3 per cent by the year end and means prices are still rising fast.

The Retail Prices Index, which is used to calculate the rise in train fares among other things, is meanwhile still in double digits despite slowing to 10.7 per cent from 11.3 per cent over the period.

Food price inflation remained painfully high at 17.3 per cent in June amid warnings the Ukraine war could see costs rise again.

Helen Dickinson, chief executive of the British Retail Consortium which represents supermarkets, said: “Supply chains remain volatile: Russia’s decision to pull out of the Black Sea grain initiative could increase costs for some staples in the future.”

Sue Davies, head of food policy at consumer watchdog Which?, said: “It’s very concerning that inflation remains so high, with food prices in particular still rising incredibly quickly and stretching some household budgets to breaking point.

“Our research shows that supermarket prices are 25.8 per cent higher on average than they were two years ago.”

ONS chief economist Grant Fitzner said: “Food price inflation eased slightly this month, although it remains at very high levels.”

Unite general secretary Sharon Graham said: “Inflation in the UK remains high not because of workers’ wages but because corporations have been filling their boots with excessive profits.

“Workers and their families are still paying the price for this: whether it’s the cost of groceries or higher rents and mortgages hit by interest rate hikes.

“The economy is not working for everyday people and we need to make different choices.”

She said Unite research had found nationalising energy would have kept inflation 4.1 per cent lower last year, “far more effective than anything the Bank of England has done.”

June’s figures could see the Bank of England opt for a smaller increase in interest rates at its next meeting in August after last month’s shock rise to 5 per cent, experts have said — but the bank is not expected to reverse its rises so far.

Shadow chancellor Rachel Reeves said: “Today’s numbers confirm what families across the country already know – that prices are still going up at staggering rates and that they’re bearing the brunt of those costs.”

Unison general secretary Christina McAnea said: “Despite promises from the Prime Minister, inflation remains way too high, placing a huge burden on working people.

“This, and soaring interest rates, means many are caught up in a relentless financial storm, and can barely afford the basics, let alone their increased housing costs.

“The government must do more to support struggling families.”

Lukasz Krebel, senior economist at Nee Economics Forum, said: “Today's stats show that inflation is at last falling but still remains very high. It’s too little too late for the millions of families who’ve already been hammered by prices which are continuing to rise.

“The cost of everyday essentials like food and energy are still significantly higher than they were two years ago, and those on the lowest incomes are struggling the most. Yet the government has done very little to help people weather this storm.

“This government needs to step up and act. They must increase the national living wage, raise benefits to reflect the true cost of living, boost public sector pay to protect essential services and get our bills down for good by investing in home retrofits and a clean energy grid.”

Chancellor Jeremy Hunt said: “We aren’t complacent and know that high prices are still a huge worry for families and businesses.”

James Smith, research director at the Resolution Foundation, added: “The UK still has one of the highest inflation rates of any advanced economy, but after today it merely looks bad rather than a basket case.”