Inflation in the UK has climbed to 11.1%, new data published by the Office for National Statistics (ONS) has shown.

The latest figure for Consumer Prices Index (CPI) inflation, which covers the 12 months to October, has risen from 10.1% in the year to September.

Following the latest jump in the annual CPI inflation rate, the ONS confirmed October’s figure is the highest in the National Statistic series, which began in January 1997. Based on indicative modelled consumer price inflation estimates, the ONS said that the annual CPI rate would have last been higher in October 1981, when it stood at 11.2%.

Despite the introduction of the government’s energy price guarantee, the ONS data confirmed that gas and electricity prices made the largest upward contribution to the change in the CPI annual inflation rate between September and October. Rising food prices also made a large upward contribution to the rise.

On a monthly basis, the figures also confirmed that CPI inflation increased by 2.0% in October, which compared with a rise of 1.1% in the same month last year.

“The war in Ukraine has taken an alarming turn for the worst and looks further from resolution than ever,” commented CEO at fintech broker Loan.co.uk, Paul McGerrigan. “The impact on global supply chains and energy pricing will therefore continue to fuel inflation until the UK can reduce dependency.

“Despite wages rising at their fastest rate for more than 20 years, they are still unable to keep pace with rapidly escalating costs, which means household budgets continue to feel the pressure. The recent record jump in bank rate has compounded this further.

“Carefully considered personal finance decisions particularly in relation to mortgages are critical to help many households navigate the next 12 to 18 months. All of us, who offer property-based borrowing advice need to step up and be there.”

Managing director of capital markets and finance at LiveMore Capital, Simon Webb, said: “What appears to be a foregone conclusion, judging by the recent 0.2% downturn in GDP, is that the UK is moving into recession along with other global economies.
 
“What is notable about the CPI inflation figure is that it has been calculated using subsidised energy prices, so the 11.1% rate is lower than if there was no energy price cap in place. This cap is due to be removed, or reviewed, in April 2023 but if it is taken away, inflation may well will pick up again. It could be a rollercoaster ride for inflation in the next year.”

Canada Life technical director, Andrew Tully, added that tomorrow’s Autumn Statement is “unlikely to provide any immediate relief” for struggling households.

“With personal inflation rates at an eye-watering level, pensioners reliant on the state pension will be pinning their hopes on the Chancellor recommitting to a double-digit increase through the triple lock promise, but even then this will hardly match the price rises pensioners are experiencing,” he said.

Share Story: