UK inflation has hit its highest levels in 41 years as households feel the brunt of the cost of living crisis and soaring energy bills.
Official figures from the Office for National Statistics (ONS) reveal that inflation jumped to a higher-than-expected 11.1% in October, the highest rate since October 1981.
Most predictions had expected inflation to rise to a lower 10.7%.
The ONS said gas prices had risen by nearly 130% over the year, while electricity costs had soared by 66%.
Families were also hit by rising costs across a range of food items, which also pushed up the cost of living to eye watering levels.
Chancellor Jeremy Hunt blamed the impact of the pandemic and Vladimir Putin’s war in Ukraine for the spike in prices as he warned that “tough” decisions on tax and spending would be needed in Thursday’s autumn statement.
“The aftershock of Covid and Putin’s invasion of Ukraine is driving up inflation in the UK and around the world,” he said.
“This insidious tax is eating into pay cheques, household budgets and savings, while thwarting any chance of long-term economic growth.
“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. That requires some tough but necessary decisions on tax and spending to help balance the books.”
Other new figures from the ONS confirmed fears that the cost-of-living crisis is being felt more acutely by low income households.
“Rising energy and food costs have more bearing on the inflation rate experienced by low-income households, as a greater proportion of their expenditure is spent on them compared with high-income households,” the ONS said.
Grant Fitzner, chief economist at the ONS, added: “Rising gas and electricity prices drove headline inflation to its highest level for over 40 years, despite the Energy Price Guarantee.
“Increases across a range of food items also pushed up inflation.
“These were partially offset by motor fuels, where average petrol prices fell on the month, while the price for diesel rose taking the disparity in price between the two fuels to the highest on record.”
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