// Inflation for the UK rose to 11.1% on Wednesday, according to figures from the Office for National Statistics
// Surging household energy bills and food prices were to blame for the record rise in inflation
Inflation reached a new 40-year-high of 11.1% in October amid soaring energy bills and food prices.
The Office for National Statistics confirmed the increase, from 10.1% in September, as the cost of light and heating for homes rose despite the Government’s energy price guarantee.
Food was the other cause as UK households see the biggest rise in food prices in 45 years.
Food and non-alcoholic beverage prices rose by 16.4% in the 12 months to October 2022, up from 14.6% in September 2022. That’s the highest since September 1977, the ONS estimates.
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
The ONS said: “The largest upward effect came from milk, cheese, and eggs, where prices for shop-bought milk and cheddar cheese rose between September and October 2022 but by more than between the same two months in 2021.”
The firm added that low-income households were facing a bigger hit from inflation than the wealthiest as energy and food take up a bigger share of their spending.
The lowest-income households suffered an inflation rate of 11.9% while top earners faced a 10.5% rate, it said.
British Retail Consortium chief executive Helen Dickinson said in response: “Many customers are keenly anticipating Black Friday deals and other promotions in the run up to Christmas, as they prepare to buy gifts and festive treats.
“Tomorrow, the Chancellor will unveil the autumn budget, where he has the opportunity to provide support for struggling households and relieve some of the costs on retailers and their suppliers, which in turn put pressure on prices.
“Retailers face an £80m per year hike in business rates from April 2023, so urgent Government action is needed to mitigate this and prevent even higher inflation in the new year.”
In response to the data, Hunt – who is due to outline a new budget on Thursday – said “tough but necessary” decisions were required to tackle rising prices.
“It is our duty to help the Bank of England in their mission to return inflation to target by acting responsibly with the nation’s finances,” Hunt said in a statement.
Click here to sign up to Retail Gazette‘s free daily email newsletter
