UK inflation returns to 40-year high as Britons battle cost-of-living crisis

LONDON – The Consumer Price Index rose 10.1% in September, according to estimates published on Wednesday by the Office for National Statistics, exceeding the consensus of expectations among economists polled by Reuters.

Reuters estimated a 10% increase in September. The number for September matches UK inflation hit 40-year high in July.

The rate increased in the year to September 2022 as The cost of living crisis in the country Continue to hit homes and businesses Before the harsh winter. inflation It unexpectedly fell to 9.9% in Augustdown from 10.1% in July, on the back of lower fuel prices.

The Diwan said that the increase in food, transport and energy prices was one of the biggest contributors to inflation. Food prices are up 14.6% year on year, transportation is up 10.9% compared to last year, while the price of furniture and household goods is up 10.8%.

Sterling pound It fell against the dollar on the news, trading at $1.1289, down from $1.1330.

Inflation data will also influence the Bank of England’s approach in the near term, just as the Bank plans to To sell some of its government bonds, known as government bondsfrom 1 November.

Britain’s finance minister, Jeremy Hunt, said in a statement that “helping the most vulnerable” would be a priority given the UK’s high inflation, along with “bringing broad economic stability and driving long-term growth that will help everyone”.

The September inflation rate highlights the severity of the UK’s inflation crisis, and comes at a time when the country is going through a period of economic volatility.

On Monday, the new British finance minister Jeremy Hunt reversed the majority of tax cuts inserted by his predecessor Kwasi QuartingOn September 23, Prime Minister Liz Truss apologized for the “mistakes” that had occurred Caused severe market turmoil.

Questions are now being asked about How long will Truss be in office?.