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UK inflation jumps to 41-year high of 11.1%

TheIndustry.fashion
16 November 2022

The Office for National Statistics (ONS) has announced that inflation jumped to a higher-than-expected 11.1% in October – the highest rate since October 1981 and up from 10.1% in September.

The rise in inflation is largely attributed to the rocketing price of as gas and electricity, despite Government support limiting the rise in bills. Most economists had been expecting a rise to 10.7%.

The ONS said gas prices have leaped nearly 130% higher over the past year, while electricity has risen by around 66%.

The jump in inflation – the biggest leap since March to April when Ofgem’s energy price cap was last changed – comes despite the Government energy support, which has sought to limit annual household gas and electricity bills at around £2,500 a year.

Chancellor Jeremy Hunt blamed the impact of the pandemic and Vladimir Putin’s war in Ukraine for the spike in prices as he warned that “tough” decisions on tax and spending would be needed in Thursday’s autumn statement.

Hunt commented: “The aftershock of COVID and Putin’s invasion of Ukraine is driving up inflation in the UK and around the world. This insidious tax is eating into pay cheques, household budgets and savings, while thwarting any chance of long-term economic growth.

“It is our duty to help the Bank of England in their mission to return inflation to target by acting responsibly with the nation’s finances. That requires some tough but necessary decisions on tax and spending to help balance the books.”

Other new figures from the ONS confirmed fears that the cost-of-living crisis is being felt more acutely by low income households, with latest analysis showing that those families suffered annual inflation of 11.9% last month, while the rate stood at 10.5% for high income households.

“Rising energy and food costs have more bearing on the inflation rate experienced by low-income households, as a greater proportion of their expenditure is spent on them compared with high-income households,” the ONS said.

Data also showed lengthy records for the other measures of inflation recorded by the ONS, with the Retail Price Index (RPI) leaping to 14.2% in October from 12.6% in September, while CPI including housing costs (CPIH) rose to 9.6% from 8.8% in September – both the highest since December 1980.


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