Rising energy and food bills tip inflation to highest level since 1981 at 11.1%

Published

2 years ago

November 16, 2022

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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.

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.

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.”

UK

Teenage girl killed on M5 in Somerset after getting out of police car named

Published

6 hours ago

November 15, 2024

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Teenage girl killed on M5 in Somerset after getting out of police car named

A teenage girl who was killed after getting out of a police car on the M5 in Somerset has been named.

Tamzin Hall, 17 and from Wellington, was hit by a vehicle that was travelling southbound between junction 24 for Bridgwater and junction 25 for Taunton shortly after 11pm on Monday.

She had exited a police vehicle that had stopped on the northbound side of the motorway while transporting her.

A mandatory referral was made to the Independent Office for Police Conduct, which is now carrying out its own investigation into what happened.

Avon and Somerset Police said: “Our thoughts and sympathies go out to Tamzin’s family for their devastating loss.

“A specially-trained family liaison officer remains in contact with them to keep them updated and to provide support.

“The family have asked for privacy at this difficult time.”

The police watchdog, the IOPC, has been asked to investigate.

In a statement, director David Ford, said: “This was a truly tragic incident and my thoughts are with Tamzin’s family and friends and everyone affected by the events of that evening.

“We are contacting her family to express our sympathies, explain our role, and set out how our investigation will progress. We will keep them fully updated as our investigation continues.”

Paramedics attended the motorway within minutes of the girl being hit but she was pronounced dead at the scene.

The motorway was closed in both directions while investigations took place. It was fully reopened shortly after 11am on Tuesday, Nationals Highways said.

UK

Mohamed al Fayed’s brother Salah also abused women, say female Harrods employees

Published

6 hours ago

November 15, 2024

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Mohamed al Fayed's brother Salah also abused women, say female Harrods employees

A survivors group advocating for women allegedly assaulted by Mohamed al Fayed has said it is “grateful another abuser has been unmasked”, after allegations his brother Salah also participated in the abuse.

Justice for Harrods Survivors says it has “credible evidence” suggesting the sexual abuse allegedly perpetrated at Harrods and the billionaire’s properties “was not limited to Mr al Fayed himself”.

The group’s statement comes after three women told BBC News they were sexually assaulted by al Fayed’s brother, Salah.

One woman said she was raped by Mohamed al Fayed while working at Harrods.

Helen, who has waived her right to anonymity, said she then took a job working for his brother as an escape. She alleges she was drugged and sexually assaulted while working at Salah’s home on Park Lane, London.

Two other women have told the BBC they were taken to Monaco and the South of France, where Salah sexually abused them.

The Justice for Harrod Survivors representatives said: “We are proud to support the survivors of Salah Fayed’s abuse and are committed to achieving justice for them, no matter what it takes.”

The group added it “looks forward to the others on whom we have credible evidence – whether abusers themselves or enablers facilitating that abuse – being exposed in due course”.

Salah was one of the three Fayed brothers who co-owned Harrods.

The business, which was sold to Qatar Holdings when Mohamed al Fayed retired in 2010, has said it “supports the bravery of these women in coming forward”.

A statement issued by the famous store on Thursday evening continued: “We encourage these survivors to come forward and make their claims to the Harrods scheme, where they can apply for compensation, as well as support from a counselling perspective and through an independent survivor advocate.

“We also hope that they are looking at every appropriate avenue to them in their pursuit of justice, whether that be Harrods, the police or the Fayed family and estate.”

The Justice for Harrods Survivors group previously said more than 400 people had contacted them regarding accusations about Mohamed al Fayed, who died last year.

One of those alleged to have been abused is Bianca Gascoigne, the daughter of former England player Paul.

Speaking to Sky News in October, Gascoigne said she was groomed and sexually assaulted by al Fayed when she worked at Harrods as a teenager.

UK

Wes Streeting ‘crossed the line’ by opposing assisted dying in public, says Labour peer Harriet Harman

Published

6 hours ago

November 15, 2024

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Wes Streeting 'crossed the line' by opposing assisted dying in public, says Labour peer Harriet Harman

Wes Streeting “crossed the line” by opposing assisted dying in public and the argument shouldn’t “come down to resources”, a Labour peer has said.

Speaking on Sky News’ Electoral Dysfunction podcast, Baroness Harriet Harman criticised the health secretary for revealing how he is going to vote on the matter when it comes before parliament later this month.

MPs are being given a free vote, meaning they can side with their conscience and not party lines, so the government is supposed to be staying neutral.

But Mr Streeting has made clear he will vote against legalising assisted dying, citing concerns end-of-life care is not good enough for people to make an informed choice, and that some could feel pressured into the decision to save the NHS money.

He has also ordered a review into the potential costs of changing the law, warning it could come at the expense of other NHS services if implemented.

Baroness Harman said Mr Streeting has “crossed the line in two ways”.

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“He should not have said how he was going to vote, because that breaches neutrality and sends a signal,” she said.

“And secondly… he’s said the problem is that it will cost money to bring in an assisted dying measure, and therefore he will have to cut other services.

“But paradoxically, he also said it would be a slippery slope because people will be forced to bring about their own death in order to save the NHS money. Well, it can’t be doing both things.

“It can’t be both costing the NHS money and saving the NHS money.”

Baroness Harman said the argument “should not come down to resources” as it is a “huge moral issue” affecting “only a tiny number of people”.

She added that people should not mistake Mr Streeting for being “a kind of proxy for Keir Starmer”.

“The government is genuinely neutral and all of those backbenchers, they can vote whichever way they want,” she added.

Prime Minister Sir Keir Starmer has previously expressed support for assisted dying, but it is not clear how he intends to vote on the issue or if he will make his decision public ahead of time.

The cabinet has varying views on the topic, with the likes of Justice Secretary Shabana Mahmood siding with Mr Streeting in her opposition but Energy Secretary Ed Miliband being for it.

The Terminally Ill Adults (End of Life) Bill is being championed by Labour backbencher Kim Leadbeater, who wants to give people with six months left to live the choice to end their lives.

Under her proposals, two independent doctors must confirm a patient is eligible for assisted dying and a High Court judge must give their approval.

The bill will also include punishments of up to 14 years in prison for those who break the law, including coercing someone into ending their own life.

MPs will debate and vote on the legislation on 29 November, in what will be the first Commons vote on assisted dying since 2015, when the proposal was defeated.