UK Inflation hits new high, soars 11.1% - here's what it means for you

Inflation is hitting the skies in most economies of the world and indicates rising prices of goods and services. It makes the cost of living dearer and eats into the actual returns of investments. In a recent report, UK’s Office for National Statistics (ONS) declared its annual inflation rate at 11.1% till October 2022.

This is the highest in the last 41 years and 1% higher than the inflation recorded in September.

The rising cost of food and soaring energy costs are due to the increased inflation rates. Reportedly, the energy bill for millions of households surged after the Energy Price Guarantee was implemented on October 1.


Besides the energy costs, prices for food and non-alcoholic items jumped 16.4% on a YoY basis and were the highest since September 1977. Moreover, despite a 0.5% fall in petrol prices in October, they were 18% dearer than last year.

UK’s Chancellor, Jeremy Hunt, blamed the nation’s inflation rates on the Russia-Ukraine war and financial effects post-pandemic.

Impact on households
The rising inflation will make the cost of living expensive, putting a strain on the average budget of most households.

FAQs

• Does the Energy Price Guarantee increase power bills?
No, the Energy Price Guarantee is a measure to lower power bills.

• Who can control the rising inflation rates?
The Bank of England can control the rising interest rates.

• How can inflation be curbed?
Inflation can be curbed by raising interest rates to promote savings.