UK inflation hits 41-year high of 11.1%


In October, UK inflation hit a 41-year high of 11.1%, beating expectations as food, transport and energy prices continued to hit households and businesses.

This was revealed by the Office for National Statistics on Wednesday. The jump was higher than the Bank of England forecast that inflation would peak at 10.9% and more than five times the central bank’s target of 2%.

Contributing factors: The report indicated that rising food prices also made a large upward contribution to the change with transportation (mainly motor fuels and used car prices) making the largest downward contribution, partially offset , to the change in rates.

In October, the sharp rise in the cost of living was caused by higher gas, electricity and food prices despite the government’s energy price guarantee, which capped gas and electricity bills to £2,500 for a home with an average use of both fuels.

  • The report stated: “The CPIH increased by 1.6% in October 2022, compared to an increase of 0.9% in October 2021.” The consumer price index (CPI) rose 11.1% in the 12 months to October 2022, up from 10.1% in September 2022. The CPI rose 2.0% in October 2022, compared with an increase of 1.1% in October 2021.
  • Despite the introduction of the government Energy price guaranteegas and electricity prices made the largest upward contribution to the change in the annual inflation rates of the IPCH and the CPI between September and October 2022”, added the report.

For the record: Inflation would have been 13.8% if the government had not introduced an energy price guarantee to limit the increase, the ONS said.

The news continues after this announcement.

  • Wage growth is lagging behind rising prices, causing the largest contraction in living standards in living memory and putting pressure on Prime Minister Rishi Sunak’s government to act.
  • The inflation rate for low-income households was 11.9% compared to 10.5% for the richest.
  • Food price inflation rose sharply to 16.5% per year, the highest in 45 years, according to the ON.


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