Gas and electricity prices pushed UK inflation to 11.1% in October, the highest in 41 years, according to official data.
The Consumer Price Index (CPI) rose 2% month-on-month in October, according to the latest inflation data from the Office of National Statistics (ONS) released on Wednesday.
CPI inflation rose 11.1% in the 12 months to October from 10.1% in September.
Inflation, which includes tenant housing costs, rose 9.6% in the 12 months to October.
The ONS said gas and electricity prices were the biggest drivers of both figures.
Average residential utility bills were previously expected to jump 80% in October. About two-thirds of the increase has been absorbed by the government’s Energy Price Guarantee, but energy bills for homes and businesses are still rising.
Rising prices for food, non-alcoholic beverages, and transportation are also big drivers of inflation.
Food and non-alcoholic beverages registered a 16.4% increase in the 12 months to October from 14.6% in September.
However, the annual inflation rate for transport fell to 9.3% in October compared to 10.9% in September.
Chancellor Jeremy Hunt blamed inflation on the aftermath of the COVID-19 pandemic and Russia’s invasion of Ukraine, saying it was the government’s duty to help the Bank of England (BoE) keep inflation under control.
“It requires tough but necessary decisions on taxes and spending to balance the books,” he said.
“High inflation makes long-term sustainable growth impossible.Tomorrow, we will lay out a plan to reduce debt, bring stability and keep inflation under control while protecting the most vulnerable.”
Labour’s shadow prime minister, Rachel Reeves, said Britain’s high inflation was the result of “12 years of Tory economic failure”, warning that “we are exposed to all kinds of shocks”. “The powerful combination of high inflation and low growth is in a vicious cycle.” of stagnation. “
In early November, the BoE raised the base rate to 3% to curb runaway inflation. Banks are also forecasting the longest two-year recession since records began in the 1920s.
BoE chief economist Hugh Pill told the Economic Affairs Committee hearing on Nov. 8 that about half of the inflation seen in September was due to external factors that pushed up oil prices. said he was thinking
Pill said the BoE’s £450bn ($536bn) of quantitative easing during the pandemic, along with the world government’s fiscal policies, may have contributed to the remaining inflation.
Pill said recent market forecasts for interest rates to reach 5.25% next year were “probably overly restrictive” and hinted at further hikes.
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Lily Zhou is an Ireland-based reporter focusing on UK news. Lily said she attended the Chinese edition of The Epoch Times for the first time before she focused on the UK in 2020.