UK: Inflation rate touches record high in October

The Consumer Prices Index (CPI) rose by 11.1% in the 12 months to October 2022, up from 10.1% in September 2022. In October 2022, the CPI annual inflation rate was the highest annual CPI inflation rate in the National Statistic series, which began in January 1997. Indicative modelled consumer price inflation estimates suggest that the CPI rate would have last been higher in October 1981, where the estimate for the annual inflation rate was 11.2%, read the official statement.

The CPI monthly rate was 2.0% in October 2022, compared with 1.1% in October 2021.

This means that, between September and October 2022, the prices of goods and services bought or consumed by UK households have increased by 2.0%.

This matched the annual CPI inflation rate in July 2021, meaning prices rose between September and October 2022 by as much as they did in the entire year to July 2021.

The largest contribution to the annual rate in October 2022 for both CPIH and CPI came from housing and household services. Other large contributions came from food and non-alcoholic beverages, and from transport.

Despite the introduction of the government's Energy Price Guarantee, gas and electricity prices made the largest upward contribution to the change in both the CPIH and CPI annual inflation rates between September and October 2022. The second largest upward contribution to the change came from rising food prices, while transport (principally motor fuels and second-hand cars) made the largest offsetting downward contribution, read the statement.