First modification:
The rise in inflation responded to the increase in gas and electricity prices, as well as increases in food, while those of fuel fell slightly. The British government of Rishi Sunak is preparing to present a new economic plan.
At 11.1% on a year-on-year basis, UK inflation hit levels not seen since October 1981, news broke a day before Chancellor of Finance Jeremy Hunt announced measures to rein in growth. Of the prices.
Consumer prices also had a big jump from the 10.1% year-on-year recorded in September, the Office for National Statistics (ONS) said this Wednesday, November 16.
Responding to the data, Hunt said “tough but necessary” decisions were required to address the rising prices. “It is our duty to assist the Bank of England in its mission to bring inflation back to target by acting responsibly with the nation’s finances,” she explained in a statement.
Analysts believe that the new jump in prices will maintain pressure to continue raising interest rates on the Bank of England, which had predicted inflation of 10.9% in October in forecasts published this month.
The poorest, those who suffer the most
Lower-income households, for whom energy and food account for a greater proportion of spending, suffered an inflation rate of 11.9%, while those with higher incomes faced a rate of 10.5%, the ONS said.
The Labor Party blamed the situation on more than a decade of Tory leadership. “We feel the powerful impact of low growth and high inflation so hard in Britain because 12 years of Tory economic failure has left us exposed,” Labor MP Rachel Reeves said on Twitter.
NEW: Inflation up at 11.1% – a 40 year high. This will leave families incredibly worried.
We feel the potent impact of low growth & high inflation so harshly in Britain because 12 years of Tory economic failure have left us exposed.
Labor will secure our economy and grow it.
—Rachel Reeves (@RachelReevesMP) November 16, 2022
Food and non-alcoholic beverage prices have risen at the fastest rate since 1977: the cost of milk has risen nearly 50% in the past year, pasta prices have risen 34%, butter 30% and cheese a 27%
The economic director of the ONS, Grant Fitzner, pointed out that “the increase in gas and electricity prices pushed the inflation rate to the highest level in more than 40 years” and specified that gas prices rose almost 130 %, while those of electricity rose around 66%.
According to the Bank of England, high prices pave the way for the United Kingdom to enter a recession soon, which may be prolonged, although it expects inflation to drop significantly from mid-2023.
With EFE and Reuters
#Economy #Inflation #United #Kingdom #reached #annual #October #highest #years