Inflation rockets to 11.1%

The Consumer Prices Index (CPI) rose by 11.1% in the 12 months to October 2022, up from 10.1% in September. Major contributors included food and non-alcoholic beverages, up 16.4%. Housing and household services, which includes household gas and electricity rose 11.7%.

Households are paying 88.9% more for gas and electricity than a year ago. ONS believes inflation is now at its highest rate since October 1981. The pound fell slightly immediately following the announcement.

Jonathan Moyes, Head of Investment Research, Wealth Club said: “With US inflation showing signs of softening last week, there would have been many looking at today’s release hoping to see something similar for the UK. These hopes have been dashed.

“Today’s inflation number was a full 1% higher than just a month ago. Food and energy remain the key drivers of the UK’s inflation problem.

“A bright spot might be that fuel prices have begun to soften, with petrol a notable negative contributor to inflation over the month. The pound has also been far stronger in recent weeks, helping to lower the cost of imports.

“However, all in all, this was not an announcement for the optimists. Inflation is now at a 41 year high. Consumers should brace themselves for a grim winter of austerity, tax rises and further interest rate rises.”