London.Nov 18, 2012 : .The UK’s Consumer Prices Index rose by 4.2% in October.This was the fastest pace since November 2011.The October annual growth rate of 4.2 percent, which is higher than the 3.1% increase recorded in September, exceeds the Bank of England’s target of inflations of 2 per cent, according to Xinhua, citing ons AS SAYING.
According to the ONS, CPI (owner occupiers housing costs) increased by 3.8% in 12 months to Oct 2021.This is an increase of 2.9% in September and 3.9% in October.
According to the ONS, housing and household services made the largest increase in the CPIH 12 month inflation rate.
This was largely due to significant price increases for electricity and gas.
Inflation reached its highest point in almost a decade in October, when it rose sharply.According to Grant Fitzner (ONS chief economist), this was due to higher household energy costs, an increase in fuel and second-hand car prices, as well as higher restaurant and hotel prices.
Fitzner stated that “the cost of goods manufactured by factories has risen significantly and is now at its highest rate for at least 10 year.”
Analysts believe that there was a possibility for the central bank to raise interest rates in December because of the sudden rise of the inflation rate.
The BoE declared earlier this month that interest rates would remain at 0.1% despite speculations of an increase to limit rising inflation.
Since the Covid-19 pandemic, two cuts to base rates of 0.75 percent to 0.1 percent were made by the BoE to assist households and businesses.
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