By Peter McLaren-Kennedy • 17 November 2021 • 9:20
Inflation basket to get major shakeup
According to today’s Office for National Statistics (ONS), UK inflation is at its highest level in a decade. The sharp rise of 4.2% in the cost of living is set to rise even further according to the Bank of England.
The consumer prices index (CPI) measure jumped to 4.2% in October from 3.1% the previous month, a bigger increase than economists had predicted and which will put further pressure on the Bank of England to act.
The main drivers behind the rise in inflation are fuel and energy costs, with the 12% increase in the energy price cap being among the main contributors. Other areas where inflation is high include education, transport, eating out and fashion costs.
ONS chief economist Grant Fitzner said “The rise 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. The cost 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.”
In his response to the news that inflation is at its highest level in a decade the Chancellor Rishi Sunak said “Many countries are experiencing higher inflation as we recover from Covid-19, and we know people are facing pressures with the cost of living, which is why we are taking action worth more than £4.2bn to help them.
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Originally from South Africa, Peter is based on the Costa Blanca and is a web reporter for the Euro Weekly News covering international and Spanish national news.
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