MNI BRIEF: UK Inflation Surges, But EPG Caps Upside
UK CPI rises to 11.1% in October, but intervention over fuel bills pared almost 3 percentage points from headline rate.
UK inflation surges to a fresh 40-year high in October, although the upside was capped by the government's introduction of a cap on energy costs from the start of Q3, according to data released by the Office for National Statistics on Wednesday.
Prices rose 11.1% year-on-year, the highest for CPI since an 11.2% read in October 1981. CPI has now risen for 15 consecutive months. A spokesperson for the ONS said inflation would have risen to 13.8% without the intervention on energy prices. Core inflation was unchanged on September at 6.5%, leaving the gap with headline at a series high 4.6%.
The increase leaves headline inflation far above the Bank of England's 2% target and Bank of England Governor and other members of the Monetary Policy Committee will face a grilling from legislators later Wednesday when the Treasury Select Committee gathers.