this is bbc news. i'mjoanna gosling, live today in sunderland. the headlines: inflation in the uk has returned to the ao—year high it hit earlier this summer. the rate, as measured by the consumer prices index, has now hit 10.1% — driven mostly by rising food prices. sometimes i've been left with £30 in the account for over a week, to pay everything and...just don't have it. we're here in sunderland throughout the day on bbc news —

talking to people about how they are coping with rising prices. join they are coping with rising prices. us at 9.30 at the we join us at 9.30 at the fire station. we have an audience full of fascinating people from all walks of life who will be talking about the cost of living crisis and how it is affecting people who work and live in the city. join us at 9.30. and i'm annita mcveigh at westminster — where at 12 o'clock, liz truss will face questions from mps in the house of commons for the first time since the almost complete reversal of her economic plan. and as inflation hits double figures, downing street refuses to commit to increasing state pensions in line with prices, which would be breaking a manifesto pledge. obviously we take manifesto commitments incredibly seriously. the chancellor will be making a statement in just over a week's time, where he will set out all the plans for taxation and expenditure and government budgets.

hello and welcome to bbc news, with mejoanna gosling, in sunderland, and annita mcveigh in westminster. today we will be talking about the latest rate of inflation and how it's affecting you and your family. the headline rate of inflation now 10.i%. that the headline rate of inflation now 10.1%. that means is back to those record levels hit earlier in the summer and at ten record levels hit earlier in the summerand at ten 10.1% record levels hit earlier in the summer and at ten 10.1% mask is one of the key underlying figures and thatis of the key underlying figures and that is that food price rises hit 14.6%. so that is that food price rises hit 1a.6%. so throughout the day, we are going to be talking about how that affects you. and good morning from

westminster, where liz truss will face questions from mps in the house of commons this lunchtime for the first time since her almost complete reversal of her economic plan. she described to describe the decision of dropping tax cuts of this painful. and the possibility of scrapping the triple lock on pensions. that is the rule that says the state pension must rise in line with the highest of three figures, either inflation or the average rise or 2.5%, whichever is greater. that row brewing after downing street said it was reviewing its commitment to increasing payments in line with inflation. of course, joanna, what happens here absolutely has an influence on what happens there in sunderland, and indeed around the uk. absolutely so, and we were out yesterday talking to people on the street. we went to a warm zone, which is one of those places that have been set up notjust here in

sunderland but across the country, that enable people to go inside and stay warm to save them putting the heating on. the issues people were talking about repeatedly where the fact they were concerned about their energy bills and also how much they have been noticing the rise in their grocery bills. so it is an issue affecting people here and across the country and there is lots going on politically that people are looking to to see what sort of support they can get. let's run through those latest inflation figures. the headline rate of inflation is 10.1%. that means prices are going up for their highest rate in a0 years. with inflation at 10.1%, the prices went up inflation at 10.1%, the prices went up between september 2021 in september 2022. that means if you paid £100 for a variety of products last year, now you are paying on average £110.10 for the same rod accessory. some prices went up more than others, and dimension food

drink. food and nonalcoholic drinks went up by 1a.6%. that is even though petrol and air fares went down. so it is a mixed picture and people are clearly noticing that where prices are going down in some areas, like petrol, they are going up areas, like petrol, they are going up a lot in other areas. the foreign secretary james cleverly gave his reaction this morning. it is a number which will cause concern for a lot of people around the country, we completely understand that. it's in the range that i think we were expecting. it could have been higher. i think the figures, sorry, the response to the energy price increases that we brought out in the statement a few weeks ago will have helped to suppress some of that inflation. but, of course, it is still something which is concerned.

i listened to the things that people are saying about theirfood bill going up. we completely get that. that's why we want to make sure that we take action to try and limit the rate of inflation. that's why it's so very important that we protect people and businesses, as i say, from those energy price rises, but we also try and address some of the core drivers of inflation, including the war in ukraine, which has pushed up energy prices and that's had a knock—on effect to so many other prices in people's baskets. that was the foreign secretary, james cleverley. in sunderland, hannah miller has been out talking to people and asking how they are feeling about what's going on. all across the country, rising prices are wearing people down and wearing away at their budgets. amanda used to work in a hospital,

before a head injury five years ago. now she receives disability benefits and lives with her mum. it can be really difficult to try and have the money. sometimes i've been left with £30 in the account for over a week to pay everything and just don't have it. how does that make you feel? upset. it's distressing. i'd have liked to be a good role model for my son and... ..can�*t be. i'd love to work. nobody would employ me. how urgently do you need to see benefits go up in line with inflation? today, now. should have been done a long time ago, but they're not in any hurry. today's figure is important because it sets the rate at which some disability benefits will rise, but not until april. the government previously made a commitment to raise all benefits, including universal credit, in line with inflation, but with the figure much higher

than they anticipated back then, that commitment is now in doubt. and the rise in prices is forcing businesses to make cuts too. matei decided to close his second restaurantjust three weeks ago because of unmanageable bills. it's starting to impact quite a lot on everything, what i do, using quite a lot of electricity, gas. comparing, i give an example, springtime last year, literally triple up. and now from this month, everything again will go up and the cost will reflect in the food. but, unfortunately, i can't put any more on top of the prices, and to be honest, this is where i am with my business now, in a surviving mood until the springtime, when we hopefully can go back on better things. how confident are you that you can survive as a business?

i don't have any option. this is my life. and the squeeze on household budgets is only expected to get tighter with the recent rise in energy costs not yet factored into today's figure. and it's those on the lowest incomes who feel the surge in inflation most keenly, as it leaves us all with less to spend and more difficult choices to make. let's get more on the latest inflation figure with our economics correspondent, andy verity. so, just talk us through those figures and what they mean. i am sor , figures and what they mean. i am sorry. could _ figures and what they mean. i am sorry. could you _ figures and what they mean. i am sorry, could you repeat _ figures and what they mean. i —n sorry, could you repeat the question, i'm having a little difficulty with the earpiece? ho difficulty with the earpiece? no worries, just asking you if you can to talk us through the latest inflation figures but we know the headline rate is 10.1% but underneath that there are other stories to be told, not least what's happening with food prices. absolutely, and the 0ns was clear

this morning that food prices were one of the big drivers for inflation, which is at the highest rate we had seen. we saw it as well in august, for a0 years, more than a0 years, as you've been mentioning. food is one of the big drivers but there is actually a little ray of hopein there is actually a little ray of hope in the figures, which may help some of our listeners look to the future, a dim light visible at the end of the inflationary tunnel, if you like. that's in the prices producers are paying for their raw materials. as well as the headline inflation figures for what consumer prices are doing, we also get the numbers for what producers are paying for their raw materials and what they are charging for their goods at the factory gate. although they are still going up really rapidly, they were up by 20% rather than 21% in the previous figures. also, the prices at the factory gates were up by less than they were last time around. so we are seeing a bit of a slowdown there and that makes sense in light of what we know about crude oil prices. if you look at crude oil thing

about crude oil prices. if you look at crude oil be thing about crude oil prices. if you look at crude oil be driving ing is supposed to be driving all of energy prices, crude is barrel now, around... in $90 a barrel now, around... less in fact than it was when the invasion of ukraine began. similarly, wholesale gas prices, the thing putin wants to weaponise and has been going to great lengths to do, that hasn't stopped the fall in the wholesale price of gas. so wholesale gas prices are now down by about a third of where they were at their peak in august. so there is some hope that that starts to feed through to inflation next year. as you mentioned, we have these figures tied to inflation uprating of benefits and pensions. if the chancellor did decide to do 10.1%, it might make up a little bit for benefit recipients from the fact they fell behind last time around, because la september's figure was just 3.1% and it meant when they got that rise this april, it was much less than inflation. it may happen

in reverse in the coming year, said the 10.1 figure we are seeing now is actually higher than inflation when it comes through next april. thank ou, it comes through next april. thank you. andy- — it comes through next april. thank you. andy. so _ it comes through next april. thank you, andy. so obviously _ it comes through next april. thank you, andy. so obviously these - you, andy. so obviously these inflation figures hitting everyone inflation figures hitting everyone in the pocket but andy mentioning some of the decisions that the government are going to have to take around the inflation figures. let's go back to westminster and it is shaping up to be another big day for the prime minister? yes, the inflation figures and the topic of pensions, they affect everyone. today's figures give us more clarity on the options for the government on pensions. the new state pension is currently worth £185.15 a week, just to give you some context on all of this. if that goes up in line with prices, it would be valued at £203.85 a week from april. if it rises in line with

earnings it will be the lower figure of £195.35 a week. the basic state pension for those who reached state pension for those who reached state pension age before april 2016 is currently £1a1 and 85 a week. that would go up to £156.20 if it rises in line with prices. and £1a9.65 if it rises in line with average earnings. this is topped up with pension credit for some low income pensioners. as we were mentioning a little earlier, there has been this thing called the triple lock on pensions and that is the rule. it's beenin pensions and that is the rule. it's been in place for several years now. it says that state pension will rise in line with the highest of three figures, either inflation, the average wage or 2.5%. joining me now to talk about this in some more detail as our chief political correspondent nick eardley. good

morning to you. yes, pensions will be the subject, already the subject of heated debate here at westminster. up until now, the pension has seen the security the triple lock would suggest that there are questions over that now? the chancellor _ are questions over that now? the chancellor is _ are questions over that now? tue: chancellor is going are questions over that now? tte: chancellor is going through government spending with a red pen at the moment, trying to figure out what savings can be made. those inflation figures we have seen this morning don'tjust cause a headache for households, but a headache for the government as well. the big question now is whether the government thinks it can afford to increase pensions and benefits by 10% in line with inflation. there is no commitment to that this morning. it seems both of those pledges are really in question and are really being weighed up by the treasury this morning. just two weeks ago, the prime minister was saying she was absolutely committed to the triple lock. that would have meant pensioners getting a 10% increase, as you have just said, in their

pensions in april. this morning, though, a close ally of the prime ministerjames cleverley was on bbc breakfast and wouldn't commit to it. have a listen. manifesto commitments are important. i know, _ manifesto commitments are important. i know. i_ manifesto commitments are important. i know, i know your viewers would want _ i know, i know your viewers would want me _ i know, i know your viewers would want me to — i know, i know your viewers would want me to give certainty here and now _ want me to give certainty here and now i'ru_ want me to give certainty here and now i'm not— want me to give certainty here and now. i'm not in a position to do that— now. i'm not in a position to do that because the announcements are going _ that because the announcements are going to _ that because the announcements are going to be _ that because the announcements are going to be made in the very, very near— going to be made in the very, very near future — going to be made in the very, very near future by the chancellor, that's — near future by the chancellor, that's the _ near future by the chancellor, that's the right thing to do. but i completely understand when people are feeling pressure on their bills, when _ are feeling pressure on their bills, when they— are feeling pressure on their bills, when they are worried about their mortgages going up, when they are worried _ mortgages going up, when they are worried about how much it costs to fill their_ worried about how much it costs to fill their car— worried about how much it costs to fill their car or heat their homes. we absolutely get it. we've got to do the _ we absolutely get it. we've got to do the right thing to make sure that we manage the economy well. we got to make _ we manage the economy well. we got to make sure that our cost of borrowing _ to make sure that our cost of borrowing doesn't go up, because that then — borrowing doesn't go up, because that then has an impact on inflation and those _ that then has an impact on inflation and those bills as well. so that— and those bills as well. so that was the foreign secretary.

similar coming out of downing street yesterday, that they wouldn't commit to the pension triple lock, nor will they commit to putting benefits up by inflation as the prime minister borisjohnson promised a few months ago. that could lead to a pretty big rebellion within the conservative party now. a lot of tory mps who are worried about their spending plans the government has worried this could push more people closer to poverty. laboursaid could push more people closer to poverty. labour said this morning they would do both, they would increase both benefits and inflation... sorry, benefits and pensions by the rate of inflation. have a listen to the shadow business secretary. yes, no ifs, no buts. and let's be clear, the government's manifesto commitment is for exactly the same thing. so there's absolutely no doubt this is what they should be doing. there's no doubt that conservative mps, who are obviously the majority in parliament, have made those personal commitments themselves when they were elected. so they should be no question of protecting people by matching the operating to inflation, which is exactly what they have promised.

jonathan reynolds there. this is just the third pmqs coming up at noon for the prime minister and even since outing number two, so much has happened. she got rid of her chancellor kwasi kwarteng and appointed a new one, jeremy hunt, who has shaded most of the economic platform she stood on to become prime minister in the first place. how much hinges on how pmqs goes by today? t how much hinges on how pmqs goes by toda ? ~ ., , , ., ., today? i think the answer is a lot because a _ today? i think the answer is a lot because a lot _ today? i think the answer is a lot because a lot of _ today? i think the answer is a lot because a lot of conservative - today? i think the answer is a lot| because a lot of conservative mps are nervous about how the prime minister can recover, if she can recover, if she can get any credibility back from this. if it goes badly today, i think it could hasten her departure from number 10. it will accelerate the plans a lot of tory mps have to try and push her out, because they will say there is no point keeping this in place if she can't robustly defend those plans in the commons. if it goes well, it may buy her a bit more

time. the impression i get this morning is that number 10 think the prime minister has bought herself a bit of time and she is in a better place this morning than she was on monday morning, although that is relative. still not a particular comfortable place to be. but it is hard to think what's going through the prime minister's head this morning because she will have to stand up in front of mps in three hours' time and basically said the opposite of what she was saying last week the sub last week she was defending the growth plan from kwasi kwarteng. this way, she will be saying it went too far too fast and we got it wrong, we need to go a lot slower, potentially put taxes up and reduce spending. last week she told keir starmer that spending would be reduced. this way, the chancellor is sitting on the treasury this morning trying to figure out where the axe can fall. so we've talked about this week, it's the most almighty of u—turns from liz truss. her challenge today is to try and sell it to mps and say, i'm the only one

who can maintain stability, we need to get the economy a chance to recover, keep me in place. but to get the economy a chance to recover, keep me in place. but a lot of conservative _ recover, keep me in place. but a lot of conservative mps _ recover, keep me in place. but a lot of conservative mps are _ recover, keep me in place. but a lot of conservative mps are not - of conservative mps are not convinced. 0k, nick, thank you. nick eardley, our chief political correspondent. joining us now to discuss this is the former pensions minister, baroness ros altmann. thank you very much for your time today. how worried, how concerned are you about the chatter that is in the air over the possibility of removing that triple lock on pensions? t removing that triple lock on pensions?— removing that triple lock on ensions? ., , , pensions? i find it absolutely incomprehensible _ pensions? i find it absolutely incomprehensible that - pensions? i find it absolutely incomprehensible that any i pensions? i find it absolutely - incomprehensible that any government could think, in the middle of a cost of living crisis, that it is right to unsettle some of the poorest people in the country. millions of pensioners who have little or nothing other than the state pension have suffered from what i would call a kind of hokey coqui welfare

policy. 0ne a kind of hokey coqui welfare policy. one minute, inflation protection is on, the next minute inflation protection is out and then it comes back in again, now it may go out again. you cannot run people's lives with this kind of uncertainty and i hope the government will immediately honour its commitment at least for the coming year, so that pensioners know they will be protected as they were promised in 2019, and as they were not protected over the past year by inflation... �* , ., ., inflation... and should that commitment _ inflation... and should that commitment be _ inflation... and should that commitment be made, - inflation... and should that commitment be made, no | inflation... and should that - commitment be made, no matter inflation... and should that _ commitment be made, no matter how tight the public purse is, no matter how tight the government's ability to spend money on the public is and evenif to spend money on the public is and even if some pensioners are better off than others? this even if some pensioners are better off than others?— off than others? this is absolutely critical to the _ off than others? this is absolutely critical to the future _ off than others? this is absolutely critical to the future of _ off than others? this is absolutely critical to the future of our - critical to the future of our welfare state and social policy. of

course there are some well off pensioners. there are some very well off people all over the country who pay little or no tax, but that's not the way to run social policy. we have just about the lowest state pension in the developed world. we are not talking about a huge sum, we are not talking about a huge sum, we are talking about a basic state pension which is somewhere around £7,000 a yearand pension which is somewhere around £7,000 a year and to suggest that we, as one of the wealthiest nations in the world, cannot afford during a cost of living crisis and after having solemnly promised to do so, to inflation protect at least this very low level of basic state support, then you have to question why people would have paid national insurance for all of those years, what any government's promises mean. of course we can review how we fund

of course we can review how we fund state pensions going forward in the medium term, but we are talking about people over the coming months and who have already suffered because they didn't get a proper inflation linked rise this year, which still has to last them until next april. they gotjust 3.1%, despite being promised far more originally. 50 despite being promised far more oriainall . ., despite being promised far more oriainall. ., , originally. so you are saying this is really about _ originally. so you are saying this is really about a _ originally. so you are saying this is really about a very _ originally. so you are saying this i is really about a very fundamental contract between the government and the public? it is a fundamental contract. it is not a large, generous state pension. it is lower than any of our european neighbours, for example. the 0ecd has our state paid an mega— pension is pretty much the lowest in the developed world and to unsettle the poorest pensioners who have elderly people, mostly women, who are feeling completely at sea, they are

already struggling to pay basic bills. yes, they have had to help with heating costs and that is commendable and i am of course gratefulfor commendable and i am of course grateful for that, commendable and i am of course gratefulforthat, but commendable and i am of course grateful for that, but they are still struggling with food costs. inflation is rising significantly through the coming period and has already risen, causing real hardship and we're not about not being able to afford a holiday or the latest gadgets, we are talking about people, in 21st—century britain, who have relied on government promises for a very meagre state pension being suddenly told,, we've hit a few hard patches and therefore we might not be able to protect you even though we promised to do so, in the middle of a cost of living crisis. ijust think if government believes that is the way to run policy, then it is making a serious

mistake and needs to rethink. baroness russ old men, former pensions minister, thank you very much and we will be bringing prime minister's questions to you live at bbc news —— ros altman. we will see if that comes up in pmqs. a critical outing for liz truss as prime minister, just her third since taking on the role. it will be interesting to see, joanna, where you are in sunderland, how people are reacting to that question over the triple lock on pensions, potentially being removed. absolutely, and as you say, around the country, there are the sorts of questions people are asking, what is life going to look like going forward for them? because it is absolutely clear that life is getting harder and harder and here in sunderland yesterday we were talking to people who were saying that their outgoings are outstripping their income and they are having to make all sorts of

difficult decisions around what they spend money on, what they eat and whether or not they are using the heating. across the country, councils are giving money to buildings that can offer a warm space for people to go to so that they don't have to be at home, potentially alone and also not to have to put the heating on and incur that expense was that there are 55 warm spaces in sunderland. one is the betsyjenny cafe. it was set up last december, a well—being centre and offers free counselling and activities to people who are struggling and i went and visited yesterday. it's said, in difficult times, look for the people who are helping. the betsyjenny cafe is a hub of care and kindness — offering warmth, a listening ear and wellbeing support that is transformative for the people who find their way here. i come here to have a cup of coffee with some... with another group of people. it gets me out the house for a bit more, warmer here. and we've got our own little room

out the back where we'll sit and talk about, like, other issues that we've had in the past. and, like the cost of living and that and this is, for me, this is escape. when i bought the building about four years ago, i hadn't decided what i wanted to do with it. steven founded the place because he wanted the support he received following the loss of both of his parents and his son to be something others could have free access to. something different, something where i could put something back into the community... now, with the cost of living crisis hitting hard, some people are coming herejust to keep warm. we've just, luckily enough, been awarded a grant by sunderland city council to be a warm space, which will enable us to have heating on all day, every day for the next few months for anybody and everybody in the local area just to come in and sit down, have a chat and keep warm. we had a couple yesterday were in all day doing a jigsaw,

so they don't have to buy drinks all day, they can just have one drink and just sit there or... and we are a warm space. so when they're here doing a jigsaw, it's the sort of thing that they might normally do at home but right now they can come here and they don't have to have their heating on? yes, and then they're not on their own. julie's been volunteering here for ten months and she gets as much out of supporting others as she puts in. i suffered from depression for a long time and it helped me to do something. it helped me, like, to use my experience and help other people, and that keeps me well, by doing things. if i was stuck in the house 2a/7, i'll be no good. but it helps me for somewhere to come and to help others. kindness is the currency this cafe runs on. you don't know what people are going through. you know, people can be walking around and be having a really hard day and you don't know about it, but working in here,

you know, they're coming in, they'll often have a chat and tell you what's on their mind. and, you know, ithink it's important they've got places like this to go to. the cost of living problems are not going to go away any time soon. but at least this is a place people can get some respite and feel the warmth of their community. 0k, well we are going to be answering your questions later here on bbc news. we will be putting questions to experts about what you want to know in terms of the cost of living crisis, of course on this day that inflation has gone back to those record levels, 10.1% the headline rate of inflation and underlying that is the fact that food prices have gone up by 1a.6%.

so do let us know what questions you want our experts to answer. we can put them to our experts. you can text them, tweet them to me. talking to our economics correspondent earlier, it was quite interesting to hear that whilst inflation is going up, there is a glimmer of hope in the figures that are out today and that the supply costs for businesses are still increasing at very dramatic levels, up 20% currently. but it is slightly down from where it was before, down 1%, that figure was 21% previously. so there is a sign that prices will start to come down and so there are... it's being said that come this time next year, it will be a different picture. but for now, of course, those difficulties that are being faced by people here in sunderland and across

the country are making life very difficult and it is very much the main topic of conversation. we are going tojoin nikki campbell now, at radio five live. he has a studio on studio audience to answer some of those questions now. a lively debate this morning, we are joined by the news channel and are on bbc two. an amazing audience with all sorts of different dues but everybody does have a view on what is happening. to our country and in our country at the moment. what is it like living through this cost of living problem? some quality cost of living problem? some quality cost of living crisis. what is it like having to deal with it at the moment? good morning. tell me about your situation in life.— your situation in life. high, so, i have a daughter _ your situation in life. high, so, i have a daughter who _ your situation in life. high, so, i have a daughter who has - your situation in life. high, so, ij have a daughter who has down's syndrome, we have made some changes, we have looked at our costs in the household and have had to make some changes, whetherfood, heating... we

can'tjust changes, whetherfood, heating... we can't just totally cut things out