| With the energy ceiling and recession looming, analysts expect inflation to slow. The UK is targeting 2% inflation, which will only be achieved in 2024 (Credit: Tolga Akmen / AFP) |
Annual inflation in the UK hit 11.1% in October, a 41-year high. According to figures released by the Office for National Statistics today (16), energy bills and food prices were the main reasons for the increase in the index from 10.1% in September.
Inflation, which has been growing since the final months of 2021 in Europe due to social control measures during the pandemic, has risen this year. Russia’s complete shutdown of natural gas supplies to Europe has sent energy prices soaring, putting pressure on inflation.
According to the bureau, inflation would have risen to around 13.8% in October if the government had not moved to cap domestic energy tariffs. Gas prices have risen by almost 130% and electricity prices by 66% in the past year, according to the Office for Official Statistics. But rising food prices contributed to inflation reaching that peak.
With the energy ceiling and recession looming, analysts expect inflation to slow. The UK’s target is 2% inflation, which will only be achieved in 2024. The Bank of England expects inflation to remain high over the next year and has signaled it may raise its key interest rate at its ninth consecutive meeting in December.
According to the Monetary Authority, the decline in output in the third quarter marked the beginning of a recession that will last until the end of next year and into 2024.
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