The cost of energy is driving UK prices up at their fastest rate for 41 years, continuing the squeeze on household budgets.
Inflation, the rate at which prices rise, hit 11.1% in the year to October, up from 10.1% in September. Soaring energy bills were behind the latest surge in prices, along with higher food and transport costs.
The soaring cost of living is squeezing household budgets and is likely to push the UK into recession this year. The latest inflation figure is the highest since October 1981 and comes ahead of Thursday’s Autumn Statement, which is expected to see chancellor Jeremy Hunt announce public spending cuts and tax rises.
To calculate the inflation rate, the Office for National Statistics (ONS) keeps track of the prices of hundreds of everyday items, known as a “basket of goods”.
It said that despite the government limiting energy bill rises in October through the Energy Price Guarantee scheme, gas and electricity prices were still the driving force behind inflation.
However, the ONS estimated that without the support for bills, the inflation figure would have risen as high as 13.8%.
Higher energy costs affect businesses as well as households, and rising bills have forced some firms to put up their prices.
As well as energy, the price of food and non-alcoholic drinks also surged, with costs up 16.4% in the year to October.
Source: bbc.com
