Inflation returns to 40-year high

The rate of inflation rose to 10.1% in September as the economy felt the effects of rising prices and the fallout from the Mini Budget, according to the Office for National Statistics (ONS).

20 Oct 2022

The rate of inflation rose to 10.1% in September as the economy felt the effects of rising prices and the fallout from the Mini Budget, according to the Office for National Statistics (ONS).

The ONS said the Consumer Prices Index (CPI) measure rose from an annual rate of 9.9% in August to match the recent 40-year high seen in July.

The report showed that the largest upwards contribution came from food costs, while fuel provided the greatest downside pressure. It said the pace of food price rises was at its highest since April 1980 - running at an annual rate of 14.6%.

Commenting on the figures, Martin Sartorious, Principal Economist at the Confederation of British Industry (CBI), said: 'Inflation returned to its recent 40-year high and is expected to grow further in October as energy bills rise in line with the government's Energy Price Guarantee.

'While the Chancellor's statement on Monday seems to have restored some fiscal stability, adjustments to the Energy Price Guarantee suggest inflation may yet remain higher for longer.

'The prospect of household energy bills rising sharply again in April 2023 emphasises the need for the government to set out the details of any future targeted support sooner rather than later, in addition to how the country will establish its longer-term energy security.'

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