UK inflation returns to 40-year high of 10.1%
Higher food prices pushed UK inflation back to a 40-year high of 10.1 percent in September, beating expectations for a slower rise.
The Office for National Statistics said the consumer price index rose 0.5 percent this month compared to August, a larger increase from the same month in 2021, when the index rose 0.3 percent.
Darren Morgan, ONS director of economic statistics, said: “After last month’s small dip, headline inflation has returned to its early summer highs. The rise was driven by further increases in food prices, which posted the largest annual increase in over 40 years, while hotel prices also rose after falling around this time last year.”
There was another small fall in petrol prices, which offset increases in other prices and the dampening contributions of air fares and used car prices.
This return to double-digit inflation will be difficult for ministers and the Bank of England. It shows that despite the energy price guarantee capping gas and electricity bills this winter, price increases have not yet peaked.
The September number is also the number normally used for increases in benefits, including the state pension. On Tuesday, new Chancellor Jeremy Hunt failed to guarantee the government would stick to its “triple lock” commitment to pensions to increase them by incomes, prices or 2.5 percent, whichever is highest.
https://www.ft.com/content/dec290b0-dc52-4486-81c7-2173188e281b UK inflation returns to 40-year high of 10.1%