The rate of inflation has hit its highest level for a decade as prices rise across the UK economy, with fuel and energy costs leading the way.
The Office for National Statistics (ONS) reported that the consumer prices index (CPI) measure jumped to 4.2% in October from 3.1% the previous month – a bigger leap than economists had predicted and piling pressure on the Bank of England to act.
The figures showed that the 12% increase in the energy price cap on household bills on 1 October was among the factors contributing the most to the spike alongside education, transport, eating out and fashion costs.
ONS chief economist Grant Fitzner said of the rise: “This was driven by increased household energy bills due to the price cap hike, a rise in the cost of second-hand cars and fuel as well as higher prices in restaurants and hotels.
“Costs of goods produced by factories and the price of raw materials have also risen substantially, and are now at their highest rates for at least 10 years.”
The latter comment represents a warning that the pace of price increases shows no sign of letting up as those costs prepare to enter the UK’s supply chain crisis which is also being complicated by a shortage of labour.
Chancellor Rishi Sunak responded: “Many countries are experiencing higher inflation as we recover from COVID, and we know people are facing pressures with the cost of living, which is why we are taking action worth more than £4.2bn to help them.
“We’re helping people get into work, progress and keep more of what they earn, through our Plan for Jobs and by effectively cutting taxes for workers receiving Universal Credit.
“We are also providing more immediate support, including through the £500m Household Support Fund for the most vulnerable families, fuel and alcohol duty freezes, and the…
Source : skynews
