UK inflation hits 41-year high of 11.1% as food and energy prices continue to soar

LONDON — U.K. ostentation jumped to a 41-year precocious of 11.1% successful October, exceeding expectations arsenic food, transport and vigor prices continued to compression households and businesses.

Economists polled by Reuters had projected an yearly summation successful the user terms scale of 10.7%, and October's people marks an summation from the 40-year precocious of 10.1% seen successful September.

Despite the instauration of the government's Energy Price Guarantee scheme, the Office for National Statistics said the largest upward contributions came from electricity, state and different fuels.

"Indicative modelled user terms ostentation estimates suggest that the CPI complaint would person past been higher successful October 1981, wherever the estimation for the yearly ostentation complaint was 11.2%," the ONS said.

On a monthly basis, the CPI roseate 2% successful October, matching the yearly CPI ostentation complaint betwixt July 2020 and 2021.

Overall, the outgo of lodging and household services, which includes vigor bills, roseate by an all-time precocious of 11.7% successful the 12 months to October 2022, up from 9.3% successful September 2022.

"In October 2022, households are paying, connected average, 88.9% much for their electricity, gas, and different fuels than they were paying a twelvemonth ago," the ONS said.

"Domestic state prices person seen the largest increase, with prices successful October 2022 being much than treble the terms a twelvemonth earlier."

Food and non-alcoholic beverages besides contributed heavily, rising by 16.4% successful the 12 months to October to notch its highest yearly complaint since September 1977.

The state faces its longest recession connected record, according to the Bank of England, portion the authorities and cardinal slope are attempting to coordinate the tightening of fiscal and monetary argumentation successful bid to rein successful inflation.

The Bank raised involvement rates by 75 basis points earlier this month, its largest hike successful 33 years, to instrumentality the Bank Rate to 3%, but challenged the market's pricing of aboriginal complaint increases.

Finance Minister Jeremy Hunt volition present a caller fiscal connection connected Thursday and is expected to denote important taxation hikes and spending cuts successful a bid to plug a £50 billion-plus spread successful the country's nationalist finances.

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