Inflation in the UK climbed sharply to 4.2 per cent in October, its highest rate for almost a decade, driven by rising fuel and energy prices, adding to pressure on the Bank of England to raise its key interest rate at its December meeting.
The cost of living, as measured by the Office for National Statistics’ Consumer Price Index, rose at its quickest rate since November 2011 last month. In October alone, it surged by 1.1 per cent, in large part due to higher energy costs for households.
The ONS said soaring inflation was being caused by rising energy bills, fuel and higher bills in restaurants and hotels, as well as the costs of raw materials and goods in factories.
The news came two days after Andrew Bailey, the governor of the Bank of England, told MPs that he was “very uneasy” about rising inflation, which now sits at more than double the target rate of two per cent.
