SOARING ENERGY COSTS DROVE UK INFLATION TO A FRESH HIGH IN OCTOBER

The annual rate of inflation rose to 11.1% in October, up from 10.1% in the 12 months to September, the Office for National Statistics said on Wednesday.

The sharp increase in living costs was caused by rising gas and electricity prices, despite a government energy price guarantee, which caps energy bills at £2,500 ($2,970) for the typical household. Food price inflation rose to 16.4%.

The prices of goods and services bought or consumed by UK households increased by 2% between September and October, according to the ONS. That means that in the space of one month, prices rose by as much as they did in the entire year to July 2021.

Rising prices in Britain contrast with cooling inflation in the United States. The US Consumer Price Index rose 7.7% for the year ending in October, a slower pace of increase than the 8% economists had expected and the lowest annual inflation reading since January.