Inflation in the UK hit a 41-year high of 11.1 percent in October. Last September this number was 10.1 percent. And the estimate was 10.7 percent.
Inflation in the UK is at a 41-year record level
Inflation in Britain hit its highest level in decades as oil and gas prices jumped due to the Russia Ukraine crisis. The government is going to take steps soon to control the prices. Inflation has risen more than market expectations. The government is going to present the budget tomorrow. Where there are plans to take steps both for public relief and inflation control.
Where has the inflation rate reached?
Inflation in the UK hit a 41-year high of 11.1 percent in October. In such a situation, the demand of the government to take steps to provide relief to the people has become stronger. Notably, the UK government is set to unveil new tax and new spending plans on Thursday. The Office for National Statistics (ONS) reported on Wednesday that consumer prices rose by 11.1 percent year-on-year in October. Last September this number was 10.1 percent. Economists had expected the inflation rate to be 10.7 percent in October. Thus the actual number was higher than their expectations. The ONS said inflation was driven by high food and fuel prices.
Government will take strict action
Finance Minister Hunt has already hinted that the government is going to take tough measures. The new budget is likely to take many tough decisions and the government may announce the withdrawal of many concessions. At the same time, the Bank of England is likely to hike rates further in the near future. Citing market experts, Reuters wrote that the Bank of England may soon increase the rate from the current 3 percent to 4 to 4.5 percent. However, market experts also say that the rate of price increase has slowed down even though inflation has been at a record level. Prices of raw materials and energy products may be at record levels, but the rate of growth is the slowest since March. Which indicates that the inflation rate is now close to its upper level.