UK inflation hits 41-year high, reaching 11.1% (YoY)

The UK Office for National Statistics (ONS) reported that the Consumer Price Index (CPI) rose by 2% in October 2022 compared to the previous month (month-on-month/m-o-m). This means that prices in the UK increased by 2% last month compared to the previous month.

Compared to October 2021, the UK experienced inflation of 11.1% (year-on-year/y-o-y). This inflation surged from 10.1% (y-o-y) the previous month and is the highest level in 41 years.

In its press release, the ONS stated that the surge in UK inflation was driven by a significant increase in food and non-alcoholic beverage prices, which jumped to 16.2% (y-o-y) in October 2022, up from 14.5% (y-o-y) the previous month.

The surge in inflation was also fueled by rising housing and accommodation service inflation, reaching 26.6% (y-o-y) last month, up from 20.2% (y-o-y) the previous month.

Furthermore, the UK's inflation rate was also driven by rising fuel prices, with transport inflation reaching 8.9% (y-o-y) in October 2022.

Overall, inflation for all goods in October 2022 was 14.8% (y-o-y), while inflation for all services was 6.3% (y-o-y). Core inflation (excluding food, energy, alcohol, and tobacco) reached 6.5% (y-o-y) in October 2022.

For information, the UK is one of the European countries affected by the Russian invasion of Ukraine, which began on February 24, 2022. Disruptions to global food and energy supply chains have pushed the UK economy to the brink of recession.