U.K. inflation accelerated to a 40-year high in September as the high cost of food crammed family budgets.
The Office for National Statistics said Wednesday that the consumer price index rose 10.1%, compared with 9.9% the previous month. The new data shows inflation returned to the July peak and is again at its highest since early 1982.
The increase was driven by food prices, which leaped by 14.5% from a year earlier, the most significant jump since 1980, the ONS said.
The rise increases expectations that the Bank of England will raise interest rates further and faster as it struggles to return inflation to its 2% target.
It will also make it more difficult for the government’s new Treasury chief, who took office less than a week ago, to restore financial stability after the government’s economic plan roiled financial markets over the past month. Jeremey Hunt has said the government “will prioritize help for the most vulnerable while delivering wider economic stability.”
Russia’s war in Ukraine has boosted food and energy prices worldwide, with shipments of oil, grain, and cooking oil disrupted. That has added to price rises that began last year as the global economy started to recover from the COVID-19 pandemic.
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