UK Inflation Soars to 41 Years High, As Brits Grapple With Rising Energy and Food Costs

Tower Bridge, London, United Kingdom U.K.
Tower Bridge, London, United Kingdom U.K.

The inflation rate in the UK skyrocketed in October, blasting above a new four-decade high, as sharp rises in energy and food prices wreaked havoc on Brits’ cost of living.

Consumer prices soared 11.1% on the level a year ago — the highest rate of inflation since October 1981, the Office of National Statistics said Wednesday. It’s also an increase on September’s 10.1% inflation print and above the 10.7% forecast in a Reuters poll of economists.

Energy prices were the most significant cause of surging inflation last month, the ONS said. It noted the rate would have climbed to 13.8%, if the UK government hadn’t capped household power bills at 2,500 pounds ($2,967) from October 1. 

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“As an indicative estimate, without the implementation of the EPG, electricity, gas and other fuels prices would have risen by nearly 75% between September and October 2022 (instead of 25%),” the ONS said.

The official data showed that food costs worsened the situation, with food price inflation hitting a 45-year high of 16.5%.