British inflation returned to above 10% in September due to rising food costs, according to official data released on Wednesday. The nation is now experiencing a problem related to the cost of living.
The Office for National Statistics (ONS) released a statement stating that the Consumer Prices Index (CPI) increased to 10.1 percent on an annual basis from 9.9 percent in August.
The rate for September was identical to the level for July and is the highest in 40 years due to extremely high energy costs.
According to historical modelled estimates of the CPI, the largest contributor to inflation in September was the increase of 14.5 percent in food and non-alcoholic beverage costs, which was the largest increase since April 1980.
According to the ONS, hotel rates also climbed in September.
“I understand that families across the country are struggling with rising prices and higher energy bills,” Britain’s new chancellor Jeremy Hunt said in a separate statement.
“This government will prioritise help for the most vulnerable while delivering wider economic stability and driving long-term growth that will help everyone.”
The government has been rocked by chaos in markets in the wake of a budget that pledged uncosted tax cuts.
The majority of those measures have since been reversed, leaving Prime Minister Liz Truss fighting to save her job.
Following widespread criticism over the budget, Truss sacked Hunt’s predecessor, Kwasi Kwarteng, after fewer than six weeks in the role.
The Bank of England will be under pressure to keep raising its main interest rate by sizable amounts, according to analysts who predicted Wednesday’s report.
At its upcoming meeting in November, the BoE may raise its interest rate by as much as one percentage point to 3.25 percent, according to Capital Economics.
SOURCE: NEWS AGENCIES
