UK Inflation Rises to 11.1% in 40-Year-High

UK Inflation Rises to 11.1% in 40-Year-High

UK inflation has risen again as the cost-of-living crisis deepens – heaping more pressure on struggling households. The Consumer Price Index (CPI) rate of inflation hit 11.1% in the 12 months to October – up from the previous figure of 10.1% in September.

It’s the highest since October 1981. Rising energy prices and the soaring cost of food were two of the biggest contributors.

Energy bills soared for households last month when the new Energy Price Guarantee kicked in from October 1.

On Wednesday morning the Chancellor of the Exchequer, Jeremy Hunt, blamed the impact of the pandemic and Vladimir Putin’s war in Ukraine for the spike in prices as he warned that ‘tough’ decisions on tax and spending would be needed in Thursday’s autumn statement. He said: “The aftershock of Covid and Putin’s invasion of Ukraine is driving up inflation in the UK and around the world.

The Bank of England had warned that inflation would have surged above 13% last month without the energy help – which would’ve seen households hit with typical bills of £3,549. Meanwhile, food and non-alcoholic prices rose by a staggering 16.4% on the year to October, up from 14.6% in September.

Inflation is a growing headache for policymakers across Europe, which is grappling with an energy crisis following Russia’s invasion of Ukraine. Soaring energy costs and rising food prices drove the eurozone’s annual rate of inflation to 9.9% in September, up from 9.1% in August, Eurostat said Wednesday.

Wednesday 16th November – High Impact Events

Times below are GMT+2

  • Tentative – Europe – ECB Financial Stability Review

Potential instruments to Trade: EUR Crosses.

  • 15.30 – Canada – CPI m/m, Core Retail Sales m/m

Potential instruments to Trade: CAD Crosses.

  • 16.15 – UK – Monetary Policy Report Hearings

Potential instruments to Trade: GBP Crosses.

  • 17.00 – Europe – ECB President Lagarde Speaks

Potential instruments to Trade: EUR Crosses.

  • Day 2 – G20 Meetings

Potential instruments to Trade: All Crosses.

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