Inflation in the UK reached the highest level in 41 years.
According to the German newspaper “Handelsblatt”, the price of food and non-alcoholic drinks in the UK increased in October at the fastest rate since 1977.
In this way, the high cost of food and energy has pushed UK inflation to its highest level in the last 41 years. Consumer prices were 11.1 percent higher in October than in the same month last year, according to the ONS in London on Wednesday.
This is the highest figure since October 1981. Economists polled by Reuters had expected a rise of just 10.7 percent, down from September’s annual inflation rate of 10.1 percent. According to the ONS, if the government had not capped household energy bills, inflation would have reached 13.8%.
The UK inflation jump is mainly due to higher energy prices, which have increased for most households despite the UK government capping energy prices from October 1. Electricity prices rose 65.7 percent year-on-year after rising 54 percent in September. Gas prices increased by 128.9% after 95.7% in the previous month.
This situation hit the lower income groups hard. In response to the data, UK Treasury Secretary Jeremy Hunt said tough but necessary decisions were needed to tackle rising prices. He emphasized: Our duty is to support the Bank of England in its duty to return inflation to a target for price management and to act responsibly.
