inflation hits the highest figure for a0 years. it was more than 10% injuly. rising food and drink prices are particularly to blame. the government had this response. my message to your viewers, whether they are small businesses or families who are really struggling, who are really worried, as you say, is that we'll be ready for more support as the new prime minister comes in. with bills going up, we've been finding out how people in the west midlands are coping. i'm actually working extra hours, obviously, to live. we will hear much more about the impact of the rising cost of living. also this lunchtime...

the contaminated blood scandal of the 1970s and �*80s, the government will give thousands of people an interim payment of £100,000 each. i think it's a vindication of the work of the inquiry and the fact that this is an interim compensation payment suggests to me that liability has been accepted by the government. there are pollution warnings for nearly 50 beaches around england and wales after untreated sewage is discharged with heavy rain. and britain's emma raducanu knocks serena williams out of the cincinnati masters in straight sets. and coming up on the bbc news channel... we will have the latest from lord's as england take on south africa in the first test of the series.

good afternoon and welcome to the bbc news at one. an increase in food and drink prices has pushed inflation to double digits as the cost of living crisis intensifies. the office for national statistics says the rise in the price of goods is now at its highest rate for more than a0 years. inflation hit 10.1% in july. in response, the chancellor nadhim zahawi said that getting it under control was his top priority. labour said its plan to freeze the energy price cap would reduce inflation this winter. 0urfirst report is from our economics is from our economics correspondent andy verity. bread and cereals, up12.1i%. milk, cheese and eggs, up 19.4%. cooking

oil up 23.4%. for consumers and small business owners, it is a financial nightmare, the worst inflation since february 1982. at this bakery in colchester those rising costs are squeezing profits so hard, its owners cut staff and adopt paying themselves a wage. the next few months will be no piece of cake. ~ . . ., ., ., cake. we have reduced the amount of hours that we — cake. we have reduced the amount of hours that we are _ cake. we have reduced the amount of hours that we are open, _ cake. we have reduced the amount of hours that we are open, we _ cake. we have reduced the amount of hours that we are open, we have - cake. we have reduced the amount of hours that we are open, we have had| hours that we are open, we have had some backlash on that from customers who don't understand that the cost of putting staff out front and producing what we do, everything we do is in—house, means that the cost of being open, with less customers, is no longer viable.— is no longer viable. inflation in the ear is no longer viable. inflation in the year to _ is no longer viable. inflation in the year to july. _ is no longer viable. inflation in the year to july, the _ is no longer viable. inflation in the year to july, the rise - is no longer viable. inflation in the year to july, the rise in - is no longer viable. inflation in i the year to july, the rise in the the year tojuly, the rise in the cost—of—living, has accelerated to 10.1%, faster than most economists expected. that double digit inflation has been caused not by wage rises but by surging global demand for commodities, from gas to steal, as the world economy reopened after the pandemic. supply could not

keep up with demand, so prices shot up. it was made worse by the war in ukraine which further disrupted the supply of commodities from wheat to sunflower oil. not every small business can pass on the increased costs to customers in higher prices. sean runs a breakdown recovery service which is tied into fixed—price contracts. service which is tied into fixed-price contracts. obviously, the fuel, fixed-price contracts. obviously, the fuel. 25% _ fixed-price contracts. obviously, the fuel, 25% to _ fixed-price contracts. obviously, the fuel, 25% to 30x. _ fixed-price contracts. obviously, the fuel, 25% to 30x. extra, - fixed-price contracts. obviously, the fuel, 25% to 30% extra, for l fixed-price contracts. obviously, i the fuel, 2596 to 3096 extra, for the the fuel, 25% to 30% extra, for the same income. insurance has gone up, the price of lorries, second—hand, 30%, may be up to 50%, some of them. and as i say, we are on the contracts, we cannot change the prices at all. contracts, we cannot change the prices at all-— contracts, we cannot change the rices at all. ., . ., . ., prices at all. today, the chancellor a . ain prices at all. today, the chancellor again promised — prices at all. today, the chancellor again promised further— prices at all. today, the chancellor again promised further financial i again promised further financial help, but there are no details yet. my help, but there are no details yet. my message to your viewers, whether they are _ my message to your viewers, whether they are small businesses or famiiies— they are small businesses or families who are really struggling and really worried, as you say, is that we _ and really worried, as you say, is that we will— and really worried, as you say, is that we will be ready for more suaport— that we will be ready for more support as the new prime minister comes_ support as the new prime minister comes in — support as the new prime minister comes in~ |f— support as the new prime minister comes in. , ., support as the new prime minister comes in. ,, ., ,~' support as the new prime minister comes in. ,, ., ., �*, support as the new prime minister comes in. ., ., �*, , comes in. if you ask what's been fuellin: comes in. if you ask what's been fuelling inflation, _ comes in. if you ask what's been fuelling inflation, you _ comes in. if you ask what's been fuelling inflation, you have - comes in. if you ask what's been l fuelling inflation, you have already answered your own question. the

price of a litre of unleaded petrol he hit a peak in earlyjuly, but since then it has dropped by about 18p per litre, which offers a glimmer of hope. it may take months, but eventually, that should feed through into less upward pressure on prices and a lower rate of inflation. however, it is likely to take months for cheaper fuel to feed through to prices on the supermarket shelves. ~ �* ., ., , shelves. we're going to see inflation going _ shelves. we're going to see inflation going up _ shelves. we're going to see inflation going up probablyl shelves. we're going to see l inflation going up probably to shelves. we're going to see - inflation going up probably to just inflation going up probably tojust under 13%, inflation going up probably tojust under13%, oraround inflation going up probably tojust under 13%, or around 13%, inflation going up probably tojust under13%, oraround13%, around 0ctober, under13%, oraround13%, around october, when we have the next energy cap announced. from autumn next year, we are expecting inflation to go down quite substantially.— inflation to go down quite substantially. inflation to go down quite substantiall . . ., ., ., substantially. price of oil has now dro ed substantially. price of oil has now drapped by _ substantially. price of oil has now drapped by a _ substantially. price of oil has now dropped by a quarter— substantially. price of oil has now dropped by a quarter from - substantially. price of oil has now dropped by a quarter from its - substantially. price of oil has now. dropped by a quarter from its peak. dropped by a quarterfrom its peak. 0ne dropped by a quarterfrom its peak. one reason economists are confident inflation will eventually slow down. the big question is when, and how high it might get in the meantime. andy verity, bbc news. our business correspondent

hannah miller boarded a bus in birmingham and asked people how they're coping with rising prices. hello... 0n the number 11 bus around birmingham, the rising cost of living is making it hard for passengers to keep a grip on theirfinances. i never thought in my lifetime i would see a time like this. i work part—time. i mean, i'm actually working extra hours, obviously, to live. but particularly with the bills going up, it's tough. i work at asda so i notice the prices have gone up quite a lot. i mean sometimes they say, why has this gone up? i say, i don't know, i only work here. it's not my fault. it's not my fault, you know. do you ever see people at the checkout who are really desperate? yes. . have. — yes, and they can't survive now. so in six months' time, they've got no chance. there should be help. you know, a lot of people need help. there should be some i assistance going around.

but a lot of people . have nowhere to turn. people expect that inflation will go up even further as well. it definitely will. _ how does that make you feel? you're worried. if you're not worried, - come on, something's wrong. you're working more just to pay the bills. yeah. what do you do? i do hairdresser. what does that mean for you if bills get even higher? oh, just for me, it'll be very difficult life after, you know, maybe leave this country. it is quite hard. my mum, she's on benefits for disability and things like that. she can't really leave the house. so then it's down to the rest of us. is it quite stressful? yeah, it can be. i look after my mum, i'm her carer, so it really scares me with her because she's just not spending in case, she doesn't know how much it's going to go up and she's even got little candles, you know, on all the while. and you've got to be careful with my mum and candles. so, she's really, really penny pinching to be careful for winter.

hannah miller reporting there. with me now is our business editor, simonjack. and simon, there is great concern that higher inflation is affecting the poorest households most of all? yes, 10%, we haven't seen that for 40 yes, 10%, we haven't seen that for a0 years, so, shocking but perhaps not unexpected, given what andy was talking about in his piece. but you're right, food and energy are the big increases, and people on low income is spent a much bigger proportion of their income on those. the institute for fiscal studies has done some work, saying, if we get 13% inflation in october, people on the lowest income is will be looking at inflation closer to 18% to 20%, so, really difficult, which is why people are so stricken, when i was out in the streets of leicester yesterday and they wanted to know what further support was coming, and i spoke to the chancellor this morning and he said his main priority was delivering on the

package which has already been announced by his predecessor rishi sunak. everyone is desperate for more detail on what extra support will be coming in october. they haven't furnished us with that yet. they say they are working up some options for the next prime minister, whoever that may be, to engage with those and to announce something. but he did say they were also looking at january, when the following price cut comes in, but at the moment, no detail on extra support, and people are really, really concerned.- are really, really concerned. simon jack, are really, really concerned. simon jack. thank — are really, really concerned. simon jack. thank yon — and you can work out how much prices are likely to rise for you by using our online personal inflation calculator. that's on our website bbc.co.uk/news, along with the latest coverage of the rising cost of living. thousands of victims of the infected blood scandal will receive interim compensation payments of £100,000 each in line with a recommendation made last month by the chairman of the public inquiry into the supplying of contaminated blood to nhs patients in the 1970s and 1980s.

simon dedman has this report. when i found out, i didn't think i had a future. i didn't think there was anything to live for because i knew i was going to get liver cancer. i knew i was going to die. i was seeing this in people that i knew. losing friends. however, i'm still here. the effect of contaminated blood treatment on one person's life. there are tens of thousands like ros cooper. around 3,000 people have lost their lives. today, blood transfusions and treatment are very safe. but in the 1970s and �*80s, there weren't the checks or knowledge about hepatitis c and hiv. patients were given blood products from donors who had those viruses. the government has announced it will provide interim compensation to around a,000 victims and bereaved partners across the uk. they will receive £100,000 each.

more people are coming forward, with an estimated 30,000 infected. for ros, it's a day of mixed emotions. it's a vindication of the work of the inquiry. and the fact that this is an interim compensation payment suggests to me that liability has been accepted by the government. it's the first time in over 40 years that a british government has accepted that compensation must be paid to those caught up in this terrible tragedy of contaminated blood. however, although we very much welcome that this payment of £100,000 is going to the surviving infected and the bereaved partners, sadly, children who have lost parents and parents who have lost children are not included. former health secretaries like andy burnham have given evidence into this scandal. he had supported the chair of the public inquiry�*s recommendation for compensation.

on this one, the government has done the right thing, the right thing, far too late for many people, and this doesn't cover everybody. but this is the first step, first step to truth, justice, accountability for the people who've suffered through no fault of their own. parents who lost children, children who lost parents, will not receive compensation as part of this announcement. campaigners will continue to push for them to be included in these interim payments and for further payments once the public inquiry concludes. simon dedman, bbc news. a man charged under the treason act after allegedly entering the grounds of windsor castle with a loaded crossbow on christmas day has appeared in court. jaswant singh chail is said to have told a protection officer, "i am here to kill the queen" before he was arrested, westminster magistrates�* court heard. mr chail, who is 20,

is also charged with making threats to kill and possession of an offensive weapon. he was remanded in custody to appear at the old bailey on 1ath september. the betting company entain, which owns ladbrokes, coral and foxy bingo, has been ordered to pay £17 million by the gambling commission because of failures around safety and measures to deal with money laundering. our business correspondent emma simpson is with me. tell us what the company did. well, first of all, jane, this is a record penalty. and it is for regulatory failures, both in its online business, and also in its betting shops, which the regulator said were just completely unacceptable. in a nutshell, entain simply didn't do enough to protect customers from gambling to match. so, for instance, there was a customer who spent long periods gambling during the night, who deposited more than £230,000 over 18

months, but entain had only contacted that customer once in our online chat. it also failed to do appropriate checks on where some customers upon no money was coming from. so, one person living in social housing, for instance, was able to deposit £186,000 in just six months. tim dieck this is the second time that entain has fallen foul of the rules, and the regulator says it could lose its licence, a very real chance of that, if there were further serious breaches. entain has agreed this settlement with the regulator, it says it has made changes around safer gambling, but there is also a long—awaited government plan to tighten up the rules, but this has been repeatedly delayed, it was delayed again after borisjohnson got ousted. campaigners say the changes just can't come too soon. campaigners say the changes 'ust can't come too momi campaigners say the changes 'ust can't come too soon. emma simpson, thank you- _ an elderly man who was stabbed

to death while riding a mobility scooter in west london yesterday has been named as thomas 0'halloran. he was 87. in the last hour, police have described the attack on mr 0'halloran as a shocking and unprovoked crime. they've appealed for help from anyone who was in greenford yesterday afternoon, including a request for dashcam footage from cars or bike helmets. this report from katharine da costa. police have described this as an horrific crime. an 87—year—old grandfather stabbed to death in broad daylight in greenford, west london. a forensic tent marks where the attack happened right next to the busy aao. emergency services were called just after a:00. despite the best efforts of paramedics, the man died at the scene. yesterday an 87—year—old grandfather on a mobility scooter had his life needlessly snatched away in a

shocking act of unprovoked violence right here in greenford. people living nearby have described their shock and sadness. how can this type of thing happen in ourarea? i've been here, i've been living in this area for 20 years, and we've never seen such, you know, something like this. so it's really, you know, it's scary. a large police cordon remains in place. police are keen to speak to anyone who either saw the victim who'd been riding a mobility scooter or anyone acting suspiciously in the area. in particular they are after dash cam or helmet cam footage of anyone that was using the busy aao eastbound into london between 3:15 and a:15 yesterday. there's still no motive for the attack and no arrests made. officers have stepped up patrols in the area to try and reassure the community. katharine da costa, bbc news. our top story this lunchtime.

the cost of living squeeze — inflation hits 10.1 percent — its highest in more than a0 years. coming up: nasa begins moving its giant new moon rocket towards the launchpad, in preparation for its maiden flight. coming up on bbc news channel. goodbye, cincinnati. serena williams is beaten by emma raducanu in what is set to be the penultimate tournament of her career. thames water has become the latest company to annouce a hosepipe ban. it will come into effect a week today, affecting 10 million customers in london and the south of england, and it means people can't use a hosepipe for watering gardens, cleaning cars or filling paddling pools. well, heavy rain in the last few days has led to pollution warnings for nearly 50 beaches around england

and wales, with untreated sewage being discharged into coastal waters. 0ur environment and rural affairs correspondent claire marshall reports. it looks so pristine but a short way upstream from this popular swimming spot near bath a pipe recently spewed untreated sewage into this land has been trying to get bathing water status for this stretch of river. it water status for this stretch of river. , ,., water status for this stretch of river. , ., ., river. it is sad that we have got wrou~ht river. it is sad that we have got wrought sewage _ river. it is sad that we have got wrought sewage coming - river. it is sad that we have got l wrought sewage coming through river. it is sad that we have got - wrought sewage coming through here, people _ wrought sewage coming through here, people want to go swimming. this is one river where _ people want to go swimming. this is one river where water _ people want to go swimming. this is one river where water quality - people want to go swimming. this is one river where water quality is - one river where water quality is being monitored. in most it is not. there are dozens of alerts in place on beaches. this footage was taken yesterday. southern water are

investigating. this is the resort of bognor regis where another alert was issued. in a statement southern water said there were thunderstorms accompanied by heavy rain the night before last and yesterday and storm releases were made to protect schools and businesses from flooding. the release is 97% rain water and should not be described as raw sewage. we are pioneering a new approach. 0n the river even some are willing to take the risk of getting ill but the question is, should they have to. claire marshall, bbc news. live now to exmouth and our correspondent there, phil mackie. this is one of the beaches where there has been a discharge of sewage and there are signs around telling people not to go swimming today. but as you can see behind me it is quieter than you would expect on a

sunny august afternoon. there are other beaches close to here with no problems and i suspect a lot of people have gone there. you can also see other people paddling and that is okay, it is swimming that is an issue. the problem is not necessarily the rain that fell here in exmouth yesterday, not very much but inland about 20 miles or so you had a5 millimetres of rain falling in a short period of time and there are perennial problems on this beach in exmouth with pollution levels because the systems around here are not up to standard and cannot cope with that amount of rain in such a short period of time. that is because the issues with water quality. they have told us it is not necessarily sewage causing problems but also a run—off from fields and all kinds of detritus that can get washed into the rivers and into the sea. but it is a pain for people who

have booked their holidays here. they're still enjoying the nice weather but not really able to go in and swim today. we have heard that things are improving and hopefully by the end of the day they will be able to go in for a debt. liz truss and rishi sunak are in belfast, for the latest hustings to decide the next conservative party leader — and, of course, prime minister. whoever moves into no 10 will face the challenge of restoring northern ireland's devolved government, which in effect collapsed in february. the democratic unionist party withdrew from the power—sharing coalition in protest at the brexit trade border with the rest of the uk, known as the northern ireland protocol. 0ur ireland correspondent chris page is in belfast for us now. the hustings event is just getting

under way here at this hotel. liz truss has taken to the stage and rishi sunak will be following shortly. the issues in northern ireland that are in sharp focus may be among the checking that the new resident of downing street will have to navigate. the protocol, power—sharing and of course the value of the pound in your pocket. the second biggest city is londonderry and they have been to hear people's opinions. the 17th century walls of this city testify to a violent history. the focus now is on culture rather than conflict. but national identities still shape politics. and the latest battleground is the northern ireland protocol. unionists who oppose the trade border believe it's a barrier with britain, a symbolic economic and legal boundary. it creates a difference and makes northern ireland different from the rest of the united kingdom. then that obviously poses an issue.

and obviously then we are also under the jurisdiction of the eu in terms of some of the trade, which again is a foreign power who we have no influence over. those sorts of concerns help to explain the actions of the biggest unionist party. the dup says it'll block the formation of a power sharing devolved government until the trade border�*s scrapped. but this protestant clergyman believes communities are more united than politicians. we see the posturing of our politicians and in a sense that's not connecting with the people on the ground level in streets and towns and villages and cities across northern ireland. we want to see northern ireland work. so what's the mood in nationalist areas where people mostly identify as irish? these women in the creggan estate are helping families who are struggling to afford school uniforms. they say dealing with the cost

of living needs to take priority and devolution must return. one of the parties in northern ireland doesn't want to go to work. because of one issue. they should be made to go to work. they need to put more of these hardship payments in place and then you get them out faster. they could be putting price caps on a lot of things. - energy and fuel costs . could easily be capped. the power sharing crisis shows northern ireland is still recovering from conflict. jeanette set up a youth club with her late husband 50 years ago. she's now working with a third generation of young people. mothers would come and say, you know, the fathers, you know, david and you saved us from a lifetime jail. i would like to see things moving forward. you know, let them sit down around the table and sort things out and just think about the the grassroots community out there who need all the help.

the next few months may bring critical negotiations. rishi sunak or liz truss will have to set a fresh political rhythm. chris paige, bbc news, derry. nasa has begun moving its giant new moon rocket towards a launchpad, in preparation for its first ever flight. the rocket, which is more than 300 feet high, will take off from the kennedy space centre in florida on a test mission to the moon, without no crew on board. 0ur science editor rebecca morelle is with me. it looks impressive. how exciting is this project? it looks impressive. how exciting is this prefect?— this project? this is a big moment because after— this project? this is a big moment because after a _ this project? this is a big moment because after a gap _ this project? this is a big moment because after a gap of— this project? this is a big moment because after a gap of 50 - this project? this is a big moment because after a gap of 50 years i this project? this is a big moment i because after a gap of 50 years nasa is getting ready to put people back on the moon and this starts now with this huge new rocket called the space launch system. it is enormous and also the most powerful rocket that nasa has ever built and we should soon see it blasting off from

cape canaveral in florida. this is a test flight, with no people on board, just mannequins. but it will embark on a journey around the moon and back to earth again landing in the ocean. it is important to see if this works because the next step would be to get astronauts on board because the ultimate aim is for nasser to put the first woman and first person of colour to walk on the moon surface and this is going to be a really big moment when it happens. but unlike the apollo missions it is notjust about a fleeting visit but building a permanent base for exploration so we can test the technology to go even further. at the first step is to get this huge rocket off the ground and it will be spectacular when it goes up, it is going to look amazing. thank you very much.

it's been a challenging morning for england's men as test cricket resumes at lord's. south africa reduced england to 100 for 5 at lunch after the first session of the first test. the day began with a recognition of one of cricket's pioneers, asjoe wilson reports. gates were meant to be opened. that was always the perspective of rachael heyhoe flint. unveiled here by her son, she is now the first woman to have a permanent memorial at lords. the traditional home of cricket. rachael heyhoe flint spent over two decades playing for england and a lifetime promoting women's sport. the mcc which owns lords was once a men only club. what this means to me is that there is finally recognition in the most public way for the contribution that rachel made to cricket. she was a trailblazer. traditions always need someone to change them. england's men have been tearing up test cricket.

bold, brave, and out. a first success for south africa in the first morning of this series. that was the plan. kagiso rabada again. zak crawley was gone. south africa want bowlers who are tall, strong, quick. yeah, that wasjoe root lbw. so afterjust an hour of play there were two key questions to ask. how long could england survive? how long before it started to rain? jonny bairstow had been immovable earlier this summer. gone here for none. and then stokes the captain was also out on the final ball of the morning. a test indeed for the brave new era for england. joe wilson, bbc news. emma raducanu says she's �*so grateful�* that her tennis career has just crossed over with serena williams — after she knocked the 23—time grand slam champion out of the cincinnati 0pen. it looks likely to be one

of the williams�* final matches, after she talked about quitting the professional game after the upcoming us open. here�*s our sports correspondent andy swiss. oh, this is spine tingling stuff. it was both the warmest of welcomes and the fondest of farewells. serena williams emerging for probably her penultimate tournament to face a player a mere 21 years herjunior. mma raducanu wasn�*t even born when williams won her first grand slam titles. and briefly, there were glimmers of that old magic williams willed on by the crowd, including her daughter, 0lympia. but any optimism soon faded as raducanu rose to the occasion. oh, that�*s excellent. with her us open title defence looming just what she needed as she ultimately cruised to victory. the celebrations were muted out of respect for one of the greatest her sport has seen.

raducanu said the honour was all hers. to play with serena, i mean, for sure i was, even when you guys were cheering for her, i was like, you know what? all for it. like, everything is she achieved is so inspirational. and yeah, it was a true honour to share the court with her. as for williams, well, there were no tears this time, but she now heads to new york and the final chapter of a quite remarkable career. andy swiss, bbc news. never a dull moment! we have lost that extreme heat but we have some flash flooding. this was lincolnshire first thing this morning. 1a6 minutes, millimetres and 2a hours which is way above the monthly average for august. most of

that fell between midnight and 6am.