Inflation once again surged in October, official data showed on Wednesday, coming in well above expectations.
According to the Office for National Statistics, consumer price inflation rose 11.1% in October year-on-year, up from 10.1% in September and the highest rate since 1991. Most analysts had been expecting CPI of around 10.7%.
The rate was pushed higher by higher gas and electricity costs – despite the introduction of the Energy Price Guarantee – and rising food prices.
The biggest downward contribution was transport, principally motor fuels and second-hand car prices.
Including owner occupiers’ housing costs, CPIH rose 9.6% year-on-year, up from 8.8% a month previously. Housing and household services, including electricity, gas and other fuels, was the largest upward contribution along with food and non-alcoholic beverages.
Naeem Aslam, chief market analyst at AvaTrade, said: “The data has confirmed that the cost of living crisis is much more serious than previously thought.”
