The annual inflation rate in the United Kingdom soared past estimates to reach a record 11.1% in October, pushed by surging energy prices despite the government introducing energy price guarantees last month.
The last time such reading was registered was 41 years ago, according to the constructed historical estimates cited by the Office for National Statistics on Wednesday. The monthly consumer price increase also surpassed expectations at 2%, matching the annual rate from July last year. Housing and household services led the CPI figures, while significant contributions also came from food and non-alcoholic beverages, as well as transport.
The latest inflation data has further pressured the Bank of England, which is expected to continue raising interest rates, with the next hike likely coming on December 15. However, the tightening policy is also projected to bring a prolonged recession period to the UK in 2023.
