World - Europe
Updated: October 19, 2022

UK: Soaring Food Prices Push Inflation Back To 40-Year High

By Quadri Adejumo
October 19, 2022
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The biggest jump in food prices since 1980 pushed British inflation back into double digits last month, matching a 40-year high.

The Office for National Statistics (ONS) said the consumer price index (CPI) increased by 10.1% in annual terms in September.

The pound slipped below $1.13 on the news and was last down 0.2% on the day.

In light of Wednesday's data, the Bank of England (BoE) will also feel under pressure to step up its interest rate hiking campaign next month.

The Daily Sabah added that food and non-alcoholic beverages prices were the biggest drivers of inflation in September as they rose by 14.5%, the biggest jump since April 1980 according to historical modelled estimates of the CPI.

"Today's release highlights the danger that underlying inflation remains strong even as the economy weakens," said Paul Dales, chief U.K. economist at consultancy Capital Economics.