The UK's inflation rose to its highest level recorded in a decade during the month of October 2021, the Office for National Statistics (ONS) revealed. The Consumer Prices Index (CPI) increased by 4.2 per cent in the past 12 months till October which is the highest since November 2011, ONS added.
The annual growth rate in September 2021 was 3.1 per cent which got elevated to 4.2 per in October, it disclosed. With a 2 per cent target for inflations in Bank of England (BoE), the inflations recorded have hiked to more than double the set mark, Xinhua news agency reported citing ONS data.
The rise in prices of electricity, gas, and other fuels, are significant factors that contributed in the CPIH 12-month inflation rate, the data added.
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Meanwhile, the CPI including owner occupiers' housing costs (CPIH) 12-month inflation rate rose by 3.8 per cent in the 12 months to October 2021, up from 2.9 per cent in the year to September, said the ONS.
"Inflation rose steeply in October to its highest rate in nearly a decade. This was driven by increased household energy bills due to the price cap hike, a rise in the cost of second-hand cars and fuel as well as higher prices in restaurants and hotels," said Grant Fitzner, chief economist at the ONS.
"Costs of goods produced by factories and the price of raw materials have also risen substantially and are now at their highest rates for at least 10 years," Fitzner said.
Analysts said the surge of inflation rate suggested that the possibility of the central bank raising interest rates in December increased.
Earlier this month, the BoE announced its decision to keep interest rates unchanged at 0.1 per cent despite widespread speculation that it will raise rates to contain rising inflation.
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The BoE made two emergency cuts of base rate from 0.75 per cent to 0.1 per cent to support businesses and households since the Covid-19 pandemic began.
