UK Inflation Soars to 41-Year High Thanks to Skyrocketing Food, Energy Prices
UK consumers continued to pay more for goods and services in October, with inflation hitting a 41-year high and substantially surpassing economists’ expectations thanks to out-of-control energy and food costs.
Latest data from the Office for National Statistics (ONS) published on Wednesday shows that UK consumer prices jumped a staggering 11.1% year-over-year in October, exceeding September’s 10.1% print and the 10.7% forecast by economists polled by Reuters. The eye-watering increase is largely attributed to skyrocketing electricity, gas, and fuel prices, even in spite of the Energy Price Guarantee program unveiled by the government at the beginning of October.
“Indicative modelled 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%,” explained the ONS. The statistics agency added that inflation would have hit nearly 13.8% in the absence of the government-imposed energy price cap, which has prevented household energy bills from exceeding $2,960 per year. “Over the past year, gas prices have climbed nearly 130% while electricity has risen by around 66%,” said ONS chief economist Grant Fitzner.
The latest figures come on the heels of the Bank of England’s grim economic projections, which call for a recession lasting well into 2024— the longest downturn on record.
Information for this briefing was found via the ONS. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.