UK inflation moves back up to 40-year high as Brits battle cost-of-living crisis

UK inflation moves back up to 40-year high as Brits battle cost-of-living crisis

• U.K. inflation rose in the year to September 2022 as the country’s cost-of-living crisis continues to hammer households and businesses ahead of a tough winter.
• Inflation unexpectedly dipped to 9.9% in August, down from 10.1% in July, on the back of a fuel price decline.

LONDON — The consumer price index rose 10.1% in September, according to estimates published Wednesday by the Office for National Statistics, just exceeding a consensus forecast among economists polled by Reuters.

Reuters estimated an increase of 10% for September. The figure for September matches the 40-year high British inflation reached in July.

The rate rose in the year to September 2022 as the country’s cost-of-living crisis continues to hammer households and businesses ahead of a tough winter. Inflation unexpectedly dipped to 9.9% in August, down from 10.1% in July, on the back of a fuel price decline.

Increasing food, transport and energy prices were the biggest contributing factors to inflation, the ONS said. Food was up 14.6% year-on-year, transport was up 10.9% compared to last year, while the price of furniture and household goods rose 10.8%.

Sterling fell against the dollar following the news, trading at $1.1289, down from $1.1330.

The inflation data comes just as the Bank plans to sell off some of its government bonds, known as gilts, from Nov. 1.

https://www.cnbc.com/2022/10/19/uk-inflation-rate-rises-to-10point1percent-as-food-and-energy-prices-continue-surge.html