In October, the Consumer Prices Index rose to 11.1 percent, which was its highest level since 1981, according to a statement released on Wednesday by the Office for National Statistics (ONS).
In contrast, the rate in September was 10.1%, the highest in 40 years and on par with the rate in July.
Despite the UK government’s restriction on energy prices, domestic fuel costs continued to soar as the market dealt with new impact from a major producer Russia’s invasion of Ukraine.
The October result exceeded the Bank of England’s anticipated peak and above market forecasts by 10.7 percent.
Despite the Energy Price Guarantee, rising gas and electricity prices caused headline inflation to reach its highest level in more than 40 years, according to ONS Chief Economist Grant Fitzner.
According to the ONS, gas prices have increased by 130% and electricity prices by 66% during the past year.
Inflation was also driven up by rising food and transportation prices.
Despite Britain’s energy support, which aimed to keep yearly energy bills at an average of 2,500 British pounds (almost $2,970), runaway inflation still occurs.
Speaking on the eve of his important government budget, Finance Minister Jeremy Hunt attributed the rise in prices to both the effects of the coronavirus outbreak and Russia’s President Vladimir Putin’s all-out conflict in Ukraine.
This nefarious tax is eroding savings, household budgets, and pay checks while impeding any possibility of long-term economic growth.
The conflict in Ukraine has also caused global inflation to skyrocket to its highest level in decades, causing economic unrest and driving major central banks to raise interest rates.
To tackle sky-high inflation, the Bank of England (BoE) announced its largest interest rate increase since 1989 this month, but it also issued a warning that the UK economy would face a record-long recession until mid-2024.
The BoE announced that it was raising borrowing prices by 0.75 percentage points to 3 percent, the highest level since the global financial crisis of 2008, in order to lower UK inflation, which it believed had reached a peak of nearly 11 percent. Hunt added on Wednesday that “tough” decisions would be needed in Thursday’s budget to help the BoE meet its 2-percent inflation target.