Inflation at highest rate since 1981

The rate of inflation for October has risen to 11.1%, up from 10.1% the previous month and at its highest rate since 1981.

The latest inflation figure of 11.1% is the highest in the UK for 41 years, a figure not seen since October 1981.

According to the Office for National Statistics (ONS), the one per cent rise in inflation has been caused by rises in energy prices for electricity and gas despite the introduction of the price cap in the Government’s Energy Price Guarantee scheme. But without that support, ONS has calculated that inflation could have been as high as 13.8%.

More inflationary pressure has come through major hikes in food and drink prices. The ONS estimates that prices rose by 16.4%, year on year, an increase of 1.8% from the previous month. This is the highest rate for food price inflation for 45 years.

Significant increases in the price of milk, cheese and eggs explain the rise in food price inflation.