UK inflation moves back up to 40-year high as Brits battle cost-of-living crisis

The Office for National Statistics announced inflation figures on Wednesday as the UK endures a historic cost of living crisis and political unrest.

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LONDON – The consumer price index rose 10.1% in September, according to estimates released by the Office for National Statistics on Wednesday, narrowly beating a consensus forecast among economists polled by Reuters.

Reuters estimated a 10% increase for September. The September figure corresponds to the UK inflation hits 40-year high in July.

The rate increased over the year until September 2022 as the cost of living crisis in the country continues to hammer households and businesses before a difficult winter. Inflation unexpectedly fell to 9.9% in Augustagainst 10.1% in July, due to lower fuel prices.

Rising food, transport and energy prices were the main factors contributing to inflation, the ONS said. Food is up 14.6% year-on-year, transport up 10.9% year-on-year, while prices for furniture and household items are up 10.8%.

Sterling fell against the dollar after the news, trading at $1.1289, down from $1.1330.

Inflation data will also affect the Bank of England’s approach in the near term, just as the Bank expects to sell some of its government bonds, called giltsfrom November 1.

UK Finance Minister Jeremy Hunt said in a statement that “helping the most vulnerable” will be a priority as the UK weathers high rates of inflation, while “providing wider economic stability and driving long-term growth that will help everyone.”

September’s inflation rate highlights the severity of the UK’s inflation crisis and comes as the country is going through a period of economic volatility.

On Monday, Britain’s new finance minister Jeremy Hunt canceled the majority of tax cuts introduced by his predecessor, Kwasi Kwartengon September 23, and Prime Minister Liz Truss apologized for the “mistakes” that had caused severe turbulence in the markets.

Questions now arise about how long Truss will remain in operation.

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