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The rise in inflation came as a result of the rise in gas and electricity prices, as well as the rise in food prices, while fuel prices decreased slightly. The British government of Rishi Sunak is preparing to introduce a new economic plan.
At 11.1% y/y, UK inflation has reached levels not seen since October 1981. The news broke a day before Chancellor of the Exchequer Jeremy Hunt announced measures to curb growth in prices.
Consumer prices also jumped significantly, from 10.1% year-on-year in September, the Office for National Statistics (ONS) said on Wednesday, November 16.
Responding to the data, Hunt said “tough but necessary” decisions are required to counter rising prices. “It is our duty to assist the Bank of England in its mission to return inflation to target by acting responsibly with the nation’s finances,” it said in a statement.
Analysts believe that the new jump in rates will maintain pressure to continue raising interest rates on the Bank of England, which predicted inflation of 10.9% in October in forecasts published this month.
The poorest, who suffer the most
The Office for National Statistics said low-income households, for whom energy and food represented a larger proportion of spending, experienced an inflation rate of 11.9%, while those with higher incomes faced an average of 10.5%.
Labor blamed more than ten years of Tory leadership for this situation. Labor MP Rachel Reeves said on Twitter: “We are feeling the powerful impact of low growth and very high inflation in Britain as 12 years of economic failure by the Conservative Party has left us exposed.”
New: Inflation rose to 11.1% – the highest level in 40 years. This will leave families incredibly anxious.
We are feeling the powerful impact of low growth and very high inflation in Britain because 12 years of economic failure of the Conservative Party has left us exposed.
Work will secure and grow our economy.
—Rachel Reeves (@RachelReevesMP) November 16, 2022
Prices of food and non-alcoholic beverages are rising at the fastest rate since 1977: the cost of milk is up nearly 50% in the past year, pasta is up 34%, butter is up 30% and cheese is up 27%.
“Soaring gas and electricity prices pushed the inflation rate to the highest level in more than 40 years,” Grant Fitzner, economic director of the National Bureau of Statistics, noted, specifying that gas prices rose by about 130%, while electricity prices rose. about 66%.
According to the Bank of England, the rise in prices paves the way for the United Kingdom to enter recession soon, which may be prolonged, although it expects inflation to decline significantly from mid-2023.
With EFE and Reuters
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