UK Inflation Skyrockets To 40-Year High Again, As Brits Grapple With Cost-Of-Living Turbulence

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Kenny Eliason Via Unsplash -
Kenny Eliason Via Unsplash -

The consumer price index surged 10.1% in September, according to estimates published Wednesday by the Office for National Statistics, blasting above a consensus forecast among economists polled by Reuters.

Reuters estimated a surge of 10% for September. The figure for September matches the 40-year high British inflation reached in July.

The rate rose in the year to September 2022 as the country’s cost-of-living crisis continues to wreak havoc on households and businesses ahead of a tough winter. Inflation unexpectedly plummeted to 9.9% in August, down from 10.1% in July, on the back of a fuel price decline.

Increasing food, transport, and energy prices were the largest contributors to inflation, the ONS said. Food skyrocketed 14.6% year-on-year, transport was up 10.9% compared to last year, while the price of furniture and household goods climbed 10.8%.

Sterling lunged against the dollar following the news, trading at $1.1289, down from $1.1330.

The inflation data comes just as the Bank plans to sell off some of its government bonds, known as gilts, from Nov. 1.