Inflation in Britain Reaches 11.1 Percent, Led by Energy Costs

Britain's cost-of-living crisis deepened in October as consumer prices surged, the highest in more than 40 years, giving no relief to households struggling to keep up with large increases in the price of food, heating and gas.

The increase was higher than expected after the annual inflation rate had gone up. The consumer prices index rose from September to October.

The Office for National Statistics said that gas and electricity prices were the main cause of the sharp rise in consumer prices. The price of food went up for the 15th month in a row as supermarkets continued to pass on increases in production costs.

The Bank of England has a target for consumer prices to rise over the course of a year.

The worst cost-of- living crisis in four decades was caused by Britain's inflation rate. Businesses and households are grappling with the prospect of a recession. The British economy contracted between July and September compared with the previous three months, and central bankers have warned of a long downturn.

Thousands of small companies that make up the core of the British economy are worried about cost increases. The British Chambers of Commerce said that inflation is still rising. Thousands of businesses say this is unsustainable.

A double blow of rising inflation and slowing or declining growth is expected to spread to Europe by the end of the year. The war in Ukraine and the sanctions against Russia have caused food and fuel prices to go up.

Wages in Britain increased in the third quarter, their fastest pace in 20 years, as people reentered the work force after the end of the swine flu epidemic. Households are struggling to keep up with the rising cost of living.

Many people re-enter the labor market as self-employed workers because of the employment gains. Wages fell when adjusted for inflation.

The Bank of England wants to bring inflation down by raising interest rates. The central bank raised its interest rates by three-quarters of a point. The bank is expected to raise rates by another half point in December, according to analysts at ING.

The moves have put more financial pressure on homeowners because they keep mortgage rates high and will cause the economy to slow down. In October, the cost of housing and household services increased by over 26 percent.

Pantheon Macroeconomics said in a note to clients that inflation should come down slowly as energy costs peak. Overall living and business costs are dependent on the government's approach to subsiding energy prices.

Britain's economy is suffering from self- inflicted wounds by the Conservative Party. The prime minister has made it clear that he intends to take a tougher approach to public finances after a period of turmoil under the previous leader, Liz Truss, who pushed economic policies during a short-lived tenure.

A plan to cut Britain's debt is expected to be announced by the chancellor of the Exchequer and Mr. Sunak on Thursday.

Spending and tax policies are expected to be detailed in the statement. The Office for Budget Responsibility will assess the impact of the government's policies on the economy and public finances.