Annual inflation again passed the 10% mark in September, in the United Kingdom, after a slight decrease in August, to 9.9%.
Inflation accelerates across the Channel. The indicator reached 10.1% over twelve months in the UK. It is fueled by the rise in food prices, which have seen their strongest increase in forty years, in the United Kingdom.
In August, inflation reached 9.9 per cent. Among other factors that helped intensify the pace of price increases last month, the Office for National Statistics (ONS) cited hotel prices in its monthly report on Wednesday.
On the other hand, the price increase was partly mitigated by a drop in fuel prices, plane tickets which fell more than usual at this time of the year, while used cars rose less than in previous years.
“After last month’s small dip, inflation is back to the highest levels of early summer,” said Darren Morgan, director of economic statistics at the ONS.
Business costs are starting to decrease
If inflation remains “at a historically high level, corporate costs will begin to ease, with crude oil prices even falling in September”, tempers Darren Morgan.
“I understand that families across the country are struggling to cope with rising prices and rising energy bills,” responded the newly appointed Chancellor of the Exchequer, Jeremy Hunt.
He was hastily appointed on Friday by Prime Minister Liz Truss after the failure of his budget plan, which combined across-the-board tax cuts and massive support for energy bills to be financed entirely by rising debt rates. Assessed as inflationary in the medium term and likely to cause public finances to slide dangerously, it scared away investors.
The pound fell to an all-time low and the UK government’s borrowing costs accelerated, affecting mortgage and business lending rates, which had already risen sharply.
“This government is prioritizing the most vulnerable while bringing economic stability and leading to the long-term growth that everyone wants,” Jeremy Hunt said in his statement.
Labour’s head of economics, Rachel Reeves, dismissed inflation figures as “adding to the anxiety of families”.
The country is going through “a crisis generated by the conservatives (…) but paid for by the workers”, she added.