Inflation surges to highest rate in ten years

Data from the Office for National Statistics shows that inflation has surged at its fastest pace in almost 10 years, hitting 4.2% in the year to October. The rate, which is the highest since November 2011, is far higher than the 3.1% rise recorded in the year to September and more than double the Bank of England’s target of 2%. The increase in Consumer Prices Index inflation was driven by a sharp increase in gas and electricity prices and can also be attributed in part to an increase in hospitality prices following the partial removal of a VAT cut for the sector. The increase comes just days after Bank of England governor Andrew Bailey told MPs that he was “very uneasy” about rising inflation, with the jump to 4.2% adding to pressure on the Bank to raise its key interest rate.

 

BBC News

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