LONDON (TBEN) — UK inflation rose to its highest level in 41 years in October, fueling the government to do more to ease the country’s cost-of-living crisis when it releases new tax and spending plans on Thursday .
Consumer prices rose 11.1% in the 12 months through October, compared to 10.1% in September, the Office for National Statistics said on Wednesday. The October figure beat economists’ expectations of 10.7%.
Higher food and energy prices pushed inflation in October to the highest level since October 1981, the ONS said.
The new data comes a day before Treasury chief Jeremy Hunt is set to unveil a new budget amid growing calls for higher wages, higher benefits, and increased spending on health and education as raging inflation erodes people’s purchasing power across the country .
Those demands complicate Hunt’s efforts to close an estimated £50 billion budget deficit and restore the government’s financial credibility after former Prime Minister Liz Truss’s disastrous economic policies undermined investor confidence and before financial market turmoil took care.
US inflation fell from 8.2% in September to 7.7% in October.