Economists around the world stared at the figures in shock. They could not believe what they were seeing. Yesterday, the UK's Office for National Statistics announced that inflation jumped to 9% in the 12 months leading up to April - higher than at any time in the past 40 years. For one journalist, the news was nothing short of "astronomical". 

Government officials have been watching nervously as prices have risen in recent months, due to rising fuel costs and the Russia-Ukraine war. The rate of the price rise is known as inflationAn increase in the price of goods in an economy. . 

Now, the Bank of England is warning that the UK is on the brink of a recessionA period of economic decline. A recession occurs when a country's Gross Domestic Product falls for six months in a row. . The nation is experiencing the worst episode of stagflation - when weak economic growth combines with high inflation - since the 1970sA series of oil price shocks led to soaring inflation and high unemployment in the 1970s. . 

Experts fear that skyrocketing inflation rates will widen the gap between the very rich and the poor and middle classes. "The warning lights could not be flashing any brighter," declared the boss of charity Citizens AdviceA British charity that helps people with legal, financial, housing and other problems. . But how will a 9% rise in prices really affect people? 

1. A bottle of milk that cost £1 one year ago will now cost £1.09. 

2. The real value of people's savings will decrease. If the inflation rate stays at 9%, savings of £100 today would be worth the equivalent of only roughly £40 in 10 years. 

3. People who are saving money to buy their first house or to live comfortably in retirement will lose out. 

4. Many of the poorest people in society do not have any savings to lose. But even though the average wage rose by 4.2% in the first three months of the year, rising prices mean that their money will not go as far. It essentially means a pay cut.

5. This year will see the second-largest fall in household disposable income since 1964. People will start cancelling holidays. 

6. Much of the inflation is caused by rising fuel costs - the price of gas has jumped by 95.5% in just one year. This hits the poorest hardest because they spend a greater proportion of their money on gas and electricity. 

7. The governor of the Bank of England fears an "apocalyptic" rise in global food prices.

8. People on high incomes can absorb a rise in the cost of living without it affecting their lifestyle. But people on low incomes cannot - one food bank in Cornwall reported cases of food poisoning after families turned off their fridges overnight to save money.

9. The Bank of England has raised interest rates to 1% in an attempt to stop inflation from rising any further. This is bad news for two million homeowners - their variable mortgage repayments will increase immediately. 

10. But inflation can be good news for people with fixed debt repayments. Their monthly repayments will make up a lower proportion of their total spending. 

11. And high inflation can be even better for the rich. Those who own houses and land can sit back and watch as their assetsUseful or valuable things, or items owned by someone or something.  increase in value.

12. Many wealthy people own shares and investments. The forces that raise the prices of goods also raise the value of companies. Money invested in stocks will be protected.

Yes: Inflation deepens the divides in society. Price rises will push many people who were already struggling into greater hardship. Middle-class savers will suffer. Meanwhile, the rich will become richer.

No: Some inflation is good - the UK has a yearly inflation target of 2%. It encourages people to spend, kickstarting the economy. Nine per cent is high, but economists expect it to fall to 1.5% in 2024.

Or... Extremes are never good news. HyperinflationInflation that reaches more than 50% per month. In such conditions, money quickly becomes worthless, and people simply stop using it. in the Weimar Republic meant it was cheaper for people to burn cash than to use it to buy fuel. But deflationDeflation occurs when prices fall. This is bad for the economy as people put off spending in the hope of prices falling further, causing a vicious cycle. can also devastate an economy.