Food, Energy Costs Push UK Inflation To 41-Year High

Posted by Samson Kankan Europe, Latest Headlines Wednesday, November 16th, 2022

(AFRICAN EXAMINER) – The inflation rate in the United Kingdom jumped in the last 12 months to 11.1 percent in October — by one percent from August’s inflation rate.

According to the Office for National Statistics, the largest upward contributions came from electricity, gas and other fuels.

“Indicative modeled consumer price inflation estimates suggest that the CPI rate would have last been higher in October 1981, where the estimate for the annual inflation rate was 11.2 percent,” the ONS said.

ONS further explained that on a monthly basis, the CPI rose 2 percent in October, matching the annual CPI inflation rate between July 2020 and 2021.

It added that the cost of housing and household services, which includes energy bills, rose by an all-time high of 11.7 percent in the 12 months to October 2022, up from 9.3 percent in September 2022.

“In October 2022, households are paying, on average, 88.9% more for their electricity, gas, and other fuels than they were paying a year ago,” it added.

“Domestic gas prices have seen the largest increase, with prices in October 2022 being more than double the price a year earlier.”

Earlier this month, the Bank of England (BoE) raised its interest rates from 2.25 percent to 3 percent — its highest rate hike since 1989.

Andrew Bailey, BoE governor, had said the move was part of efforts by the bank to tame rising inflation.

The UK has been battling difficult economic situations due to surging energy costs arising from the Russia-Ukraine war.