Rising energy and food bills tip inflation to highest level since 1981 at 11.1%
There has been a higher than expected leap in the rate of inflation, to a 41-year high of 11.1% last month, led by the latest rise in energy bills.
The Office for National Statistics (ONS) revealed the increase, from 10.1% in September, as the cost of light and heating for homes rose further despite help from the government’s energy price guarantee that limits wholesale charges for gas and power.
Food was cited as the other major element adding inflationary pressure during October, rising at the fastest annual pace since 1977.
The ONS estimated that the 11.1% reading for the consumer prices index (CPI) measure of inflation was the highest since October 1981.
It added that prices rose between September and October 2022 by as much as they did in the entire year to July 2021.
Economists polled by Reuters had expected the rate of inflation to rise to 10.7% – itself still almost double the pace of wage growth.
Surging energy prices have been the main driver of the cost of living crisis – mostly a consequence of Russia’s invasion of Ukraine in February that sent the cost of many commodities such as wheat, and the cost of producing them, through the roof.
Wholesale energy costs currently remain below their conflict era peaks, raising hopes that the worst inflation is behind us.
However, there remains a lack of clarity on the support for energy bills beyond April, when the price guarantee will be reviewed. Further information could come in the chancellor’s autumn statement to MPs due on Thursday.
Jeremy Hunt is tipped to protect the most vulnerable from the worst by raising benefits and pensions in line with inflation but has warned that we all face higher taxes to help balance the books.
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‘Taxes will rise for everyone’
The Bank of England had expected that inflation would have surged above 13% last month without the government energy bill intervention because average annual bills under the Ofgem-set price cap would have skyrocketed to around £3,450.
Policymakers were tipped, by financial markets, to impose a further 0.5 percentage points increase to Bank rate when its rate-setting committee meets again next month.
That would take the rate to 3.5%.
But the higher than expected inflation figure could mean a more aggressive rate rise is considered – piling even more misery on borrowers after November’s 0.75 percentage point hike.
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UK on the brink of recession?
The Bank has signalled that curbing inflation is its priority despite revealing last month that it expected the country was already in recession.
Official figures last week showed the economy contracted by 0.2% in the three months to September.
The Bank has raised the prospect of seven further quarters of negative growth.
Rachelle Earwaker, senior economist for the living standards-focused Joseph Rowntree Foundation said of the gloom: “The cost of living has millions fearing for the future, contributed to by soaring cost rises for food, transport and energy.
“Every day sees still more stories of people selling their possessions, or borrowing money at punishing interest rates, just to afford these essentials.”
Head of research for the British Chambers of Commerce business group, David Bharier, said separate ONS data covering factory gate prices indicated that inflation was yet to peak.
“We speak to thousands of businesses who tell us this is unsustainable”, he said.
“Our research shows that confidence is falling fast as many SMEs find it almost impossible to absorb or pass on rising costs.
“While the Bank of England seeks to control inflation through further interest rate rises, this is a blunt instrument that fails to address the core drivers of inflation for most firms: soaring energy costs, global supply chain disruption, and rising staff costs due to labour shortages.
“Ahead of tomorrow’s autumn statement, businesses will need to see a clear plan from the chancellor to boost business investment and growth, as well as targeted measures that ease the specific causes of inflation.
“The UK economy otherwise faces a lethal combination of recession and runaway inflation.”
Police have appealed for information after a man was charged with murdering two women and raping a third.
Simon Levy has been charged with murdering 53-year-old Carmenza Valencia-Trujillo who died on the Aylesbury Estate, south-east London, on 17 March, the Metropolitan Police said.
In September, Levy, of Beaufoy Road, Tottenham, north London, was charged with murdering 39-year-old Sheryl Wilkins who was found unresponsive in High Road, Tottenham, on 24 August.
He is also accused of grievous bodily harm with intent, non-fatal strangulation and two counts of rape against a third woman, who cannot be named for legal reasons, in Haringey, north London, on 21 January, police said.
The 40-year-old will appear at Westminster Magistrates’ Court on Tuesday charged with Ms Valencia-Trujillo’s murder.
Sheryl Wilkins was found unresponsive in High Road, Tottenham, on 24 August. Pic: Metropolitan Police
He is also due to appear at the Old Bailey on Wednesday for a plea and trial preparation hearing for the murder of Ms Wilkins.
Detectives believe there may be individuals who have information relevant to this investigation – or who are yet to report incidents which have directly impacted them – and are asking for people to come forward.
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UK
Family of woman killed 56 years ago, in a case of mistaken identity, believe her remains are buried in a garden
A new “national day” to honour victims and survivors of terrorism will be added to the calendar from next year, it has been revealed.
The annual commemoration will fall on 21 August, and will be marked in a different place each year to recognise the widespread impact of terrorism around the country.
It comes after a 12-week public consultation showed 91% supported the plan for a national day, and 84% strongly supported the proposal.
Flowers left in St Ann’s Square, Manchester, to remember the Manchester Arena terror attack. Pic: PA
How the day will look, including a final name and symbol, will be worked out collaboratively between survivors and ministers, according to the Home Office.
But it will “honour and remember victims and survivors of terrorism”, encouraging survivors to access specialist support, spotlighting their stories, and educating the public.
A spokesperson for the Home Office confirmed that it would not be a bank holiday.
Jo Berry, whose father Sir Anthony Berry was killed in the IRA Brighton hotel bombing in 1984, said victims of terrorism would no longer be “a footnote of history”.
Jo Berry, whose father was killed in the Brighton bombing in 1984, with convicted bomber Patrick Magee in 2004. File pic: PA
She said: “What we remember as a nation matters. It sends a signal about what we value.
“For too long, survivors of terror attacks, and those who have been killed in them, have been a footnote of history. Survivors have felt ignored and forgotten.
“That’s why Survivors Against Terror launched a campaign for a new national day of memorial three years ago.”
Read more:
Referrals to UK counter-terrorism programme reach new high
I was reporting in London during 7/7 – here’s what happened
Travis Frain, who survived the Westminster Bridge attack in 2017, also backed the campaign.
He said: “A national day would provide an opportunity to remember those we have lost, to pay tribute to the bravery and resilience of those who have survived these heinous acts, and for us to look forward to the future to educate the next generation.”
The date was chosen to coincide with the UN International Day of Remembrance and Tribute to the Victims of Terrorism.
Plans have also been announced for a new support hub to help victims in the aftermath of terror attacks.
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