A new 41-year record for annual inflation for the UK was hit in October 2022 according to figures released today by the Office for National Statistics (ONS).
UK Consumer Prices Index (CPI) remained double digit and increased by a massive 1.0% from 10.1% pa (September 2022) to 11.1% pa (October 2022). When you look at monthly rather than annually, it was an ‘eye watering’ 2% pm.
The old measure of inflation, the Retail Prices Index (RPI) increased by an even bigger 1.2% pa margin from 12.6% pa (September 2022) to 14.2% pa (October).
The ONS put the continued inflationary rises down to the huge spike in the costs of our gas and electricity. The biggest contributors were as follows:
It was household essential services of heating, up 36.9% pa in September and 16.9% pa in October, but now capped until next year, and basic food supplies, up 14.5% pa in September and 16.2% pa in October, which took the biggest hits. However, it seems that we are all still enjoying going out, enjoying a beer, and upgrading our mobile phones despite prices rising in these sectors.
Some items did fall back on costs such as:
Old Inflation Measure - Retail Prices Index (RPI)
The old measure of inflation RPI, an arithmetical mean of the average prices of a basket of household spending, accelerated to yet another painful 41 year high of 14.2% pa up from 12.6% in September. Some commentators are predicting this could hit 18% pa, taking us back to the crisis of the late 1970s.