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UK Inflation at 10-Year High

  • By Al Mayadeen
  • Source: Agencies
  • 17 Nov 2021 13:39
1 Min Read

The inflation rate in the UK has jumped to its highest level in a decade as people suffer from soaring energy bills

  • x
  • Annual inflation rose to 4.2% in October, up from 3.1% in September
    Annual inflation rose to 4.2% in October, up from 3.1% in September

The UK's inflation rate has jumped to its highest level in a decade, hitting more than double the government's target as energy bills rise. 

With energy prices soaring in Britain, the inflation rate is now at more than double the 2% target set by the government for the Bank of England. This increase means that the Bank will be under pressure to raise interest rates, as households suffer under the weight of increased prices.

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UK's energy regulator, Ofgem, lifted its cap on household bills, as wholesale gas prices reached record levels with global economies recovering from pandemic lockdowns.

A senior economist at the Resolution Foundation, Jack Leslie, said the rate of inflation had increased at its fastest rate over the past year since 1989 – a shift that meant real wages were already declining and were likely to continue to do so for the upcoming six months.

“We could be set for a sustained period of shrinking pay packets,” he warned.

  • United Kingdom
  • UK
  • Energy crisis
  • Economic inflation

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