Inflation hits 11.1% in 41-year high
- On November 16, 2022
- By GrowthInvest Marketing
Rising energy and fuel costs pushed up consumer price inflation in the year to the end of October.
UK inflation accelerated to 11.1% in the year to the end of October, representing a 41-year high.
The latest Office for National Statistics (ONS) figures revealed that rising energy and food prices had pushed the rate up from 10.1% in September.
The rise came in ahead of expectations – a Reuters poll had predicted 10.7% for October.
Mike Bell, global market strategist at JP Morgan Asset Management, believes the Bank of England will have to continue to hike interest rates, reaching a peak of 4.5%.
‘These numbers sit uncomfortably alongside the message sent from the Bank of England in its last meeting, when it argued that only modestly higher interest rates would be necessary to bring inflation back towards its 2% target. We are not so convinced,’ he said.
‘What has been underestimated consistently has been the inflationary pressures stemming from the tight labour market. Although vacancies and employment eased marginally in yesterday’s labour market report, wage growth continued to push higher.
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