UK Inflation Soars to New 41-Year High of 11.1%

Headline inflation in the United Kingdom surged faster than expected to a 41-year high of 11.1%, putting the Bank of England under pressure to hike interest rates again.

The Consumer Prices Index increase exceeded both the central bank’s estimate of 10.9% and the median forecast of 10.7% among economists.

On Wednesday, the Office of National Statistics noted that rising food costs and the tailwinds from hiking the energy price cap were among the main contributing factors to the surge in the prices people pay for essentials.

The CPI, a measure of inflation, had reached 10.1% last month, returning to its prior record set in July after falling to 9.9% unexpectedly in August.

According to the ONS, inflation would have been 13.8% higher if the government had not implemented an energy price guarantee in October, which capped increases in electricity and natural gas rates.