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.
“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%.