Inflation has reached a new 40-year-high of 11.1 per cent amid soaring energy bills and food prices.
The rate of Consumer Price Index (CPI) inflation hit the peak in October from 10.1 per cent in September, the latest data from the Office for National Statistics (ONS) revealed.
The latest inflation figure is the highest since January 1982.
Rising gas and electricity bills, as well as increasing food prices, have contributed heavily to the leap in inflation in recent months.
Despite the introduction of the government’s Energy Price Guarantee, gas and electricity prices made the largest leap upwards last month, up by 24,3 per cent.
Food inflation soared to a record 16.4 per cent, with basics such as tea bags, milk and sugar significantly increasing in price.
Chancellor Jeremy Hunt warned that getting inflation under control would require “tough but necessary decisions on tax and spending to help balance the books’’, as he puts the finishing touches on a fiscal statement expected to be aimed at raising around £60bn.
Mr Hunt blamed the impact of the pandemic and Vladimir Putin’s war in Ukraine for the spike in prices.
He said: “This insidious tax is eating into pay cheques, household budgets and savings, while thwarting any chance of long-term economic growth.
“It is our duty to help the Bank of England in their mission to return inflation to target by acting responsibly with the nation’s finances. That requires some tough but necessary decisions on tax and spending to help balance the books.
“We cannot have long-term, sustainable growth with high inflation. Tomorrow I will set out a plan to get debt falling, deliver stability, and drive down inflation while protecting the most vulnerable.”
The latest inflation rise comes after the increase in the energy price cap in October due to eye-watering wholesale prices as a result of Russia’s war in Ukraine.
However, the government has provided some support, limiting the increase in bills to around £2,500-a-year for households.
The rise could lead to another interest rate rise from the Bank of England next month, with many experts predicting a half-point rise to 3.5 per cent.
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