Inflation increase

According to the Office for National Statistics (ONS) the rate of inflation rose to 10.1% in September 2022 as the economy felt the effects of rising prices and the repercussions from the Mini Budget.

The report showed that the largest increase came from food costs. It said the pace of food price rises was at its highest since April 1980 - running at an annual rate of 14.6%.

Commenting on the figures, Martin Sartorious, Principal Economist at the Confederation of British Industry (CBI), said:

'Inflation returned to its recent 40-year high and is expected to grow further in October as energy bills rise in line with the government's Energy Price Guarantee.

'While the Chancellor's statement (on 17 October) seems to have restored some fiscal stability, adjustments to the Energy Price Guarantee suggest inflation may yet remain higher for longer.

'The prospect of household energy bills rising sharply again in April 2023 emphasises the need for the government to set out the details of any future targeted support sooner rather than later, in addition to how the country will establish its longer-term energy security.

In October the Consumer Prices Index including owner occupiers' housing costs (CPIH) rose by 9.6% in the 12 months to October 2022, up from 8.8% in September 2022. The largest upward contributions to the annual CPIH inflation rate in October 2022 came from housing and household services (principally from electricity, gas, and other fuels), food and non-alcoholic beverages, and transport (principally motor fuels).

The Consumer Prices Index (CPI) rose by 11.1% in the 12 months to October 2022, up from 10.1% in September 2022.

Despite the introduction of the government's Energy Price Guarantee, gas and electricity prices made the largest upward contribution to the change in both the CPIH and CPI annual inflation rates between September and October 2022.

Source: ONS