Inflation in the UK in October increased to 4.2 percent in annual terms Annual inflation in the country has accelerated, reaching its highest level since November 2011. This is evidenced by data from the Office for National Statistics, ONS.
The inflation rate in October 2021 amounted to 4.2 percent in annual terms, in September this figure was lower (3.1 percent ). On a monthly basis, the consumer price index increased by 1.1 percent. In September 2021, the index rose only 0.3 percent on a monthly basis. ONS noted that citizens' expenses for transport, fuel (gas and electricity), food in restaurants have significantly increased, and prices for used cars have also increased.
The bureau's analysts note that at the moment inflation in the country has already doubled the target indicators of the Bank of England. It has been growing since the UK economy began to recover from a lockdown at the height of the pandemic. The rise in prices is also ahead of the forecasts of experts. “The value of goods produced by factories and prices of raw materials have risen substantially and are now at their highest levels in at least a decade,” ONS chief economist Grant Fitzner told the BBC. >
According to the former member of the Bank of England's monetary policy committee, Sir John Give, who also leads the publication, inflation will be significantly higher than the target level of the country's financial regulator until the end of 2021. “The Bank of England and other forecast authors expect [inflation] to rise to about five percent by April 2022. So, in fact, this is not a surge, it is a rather noticeable trend, “the economist emphasized.
In mid-September, a significant rise in prices was already recorded in Britain. During that period, inflation hit more than a nine-year high, and the month-over-month jump of 1.2 percent was a record in at least 24 years. The reason for this growth, experts have named a new scheme to help restaurants – “Eat out to help out” (Eat Out to Help Out). In August 2020, the country's government offered to give restaurant diners a 50 percent discount from Monday to Friday. So the authorities wanted to stimulate the economy and encourage people to spend money after the lockdown.