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UK inflation hits 41-year high of 11.1% from rising energy bills – what it means for your money

THE UK’s rate of inflation hit 11.1% in October driven by soaring gas and electricity prices.

The data from the Office for National Statistics (ONS) reveals the rate went up in October from 10.1% in September and is now at a record high.

Today’s inflation rate is the highest in 41 years, the ONS said. 

Inflation is a measure of how the price of goods and services have changed over the past year. 

When it goes up it means prices on everyday items, essentials, fuel and bills are higher – which means budgets are being squeezed.

The soaring rate reflects the current cost of living crisis, with millions of people grappling with rising energy bills, petrol prices and grocery costs. 

Grant Fitzner, chief economist at the Office for National Statistics (ONS), said: “Rising gas and electricity prices drove headline inflation to its highest level for over 40 years, despite the Energy Price Guarantee.

“Over the past year, gas prices have climbed nearly 130% while electricity has risen by around 66%.

“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.

“There was further evidence that costs facing businesses are rising more slowly, driven by crude oil and petroleum prices.”

Chancellor of the Exchequer, Jeremy Hunt said: “The aftershock of Covid and Putin’s invasion of Ukraine is driving up inflation in the UK and around the world.

“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.

“We cannot have long-term, sustainable growth with high inflation.

“Tomorrow I will set out a plan to get debt falling, deliver stability, and drive down inflation while protecting the most vulnerable.”

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