UK inflation rises to its highest level since 2011
The British inflation rate jumped more than expected and rose to the highest level in nearly a decade, increasing the pressure on the Bank of England to raise interest rates.
According to data from the National Bureau of Statistics, the annual rate of the consumer price index rose to 4.2% last month, higher than the 3.1% in September and the fastest growth rate since November 2011.
Inflation rose to more than twice the Bank of England’s 2% target, higher than the 3.9% forecast by economists surveyed by Reuters.
Grant Fitzner, chief economist at the National Bureau of Statistics in the United Kingdom, said that the increase in the price ceiling imposed by regulators from the beginning of the month to reflect higher natural gas prices has led to an increase in household energy bills, leading to inflation in October The rate has risen “sharply”. Rising costs of used cars and fuel, as well as rising restaurant and hotel prices, are driving inflation.
Excluding volatile energy and food, the core inflation rate rose to 3.4% from 2.9% in September, higher than expected.
Chancellor of the Exchequer Rishi Sunak said: “As we recover from Covid, many countries are experiencing higher inflation and we know that people are facing pressure on the cost of living.”
The Bank of England predicts that consumer prices will rise to 4.5% in November due to high energy prices and strong demand hindering supply chain disruption, and peak at around 5% in April.
Yael Selfin, chief economist at KPMG UK, said that “after the strong labor force data released this week, confirming that inflation is further away from its 2% target may strengthen the Bank of England’s determination to raise interest rates in December”.
The UK is not the only country where household income is threatened by rising prices. Last week, the United States reported that the consumer price index rose in October at the fastest rate in 30 years. The final data released on Wednesday is expected to confirm that inflation in the euro zone rose at the fastest rate in 13 years.
The cost of goods produced by factories and the prices of raw materials have also risen sharply. The annual rate of producer input prices has jumped from 11.4% last month to 13% in October, which is the highest level in at least 10 years. year.