Inflation returns to 40-year high as fears over cost of living crisis grow

dailyrecord.co.uk:

Inflation last month returned to the 40-year high it hit earlier this summer after food prices soared across the UK. The Office for National Statistics (ONS) said Consumer Prices Index inflation reached 10.1 per cent in September, compared with 9.9 per cent in August.

It was above the expectations of economists, who had predicted a figure of 10 per cent. The figure matches the 40-year high inflation hit in July and remains well above the Government 's target of 2 per cent.

The increase was driven by food prices, leaping by 14.5 per cent compared with the same month last year, representing the largest annual rise since 1980, according to data modelling.

Meanwhile, housing and utilities costs leapt by 20.2 per cent against the same month last year. ONS director of economic statistics Darren Morgan said: "After last month's small fall, headline inflation returned to its high seen earlier in the summer."The rise was driven by further increases across food, which saw its largest annual rise in over 40 years, while hotel prices also increased after falling this time last year."These rises were partially offset by continuing falls in the costs of petrol, with airline prices falling by more than usual for this time of year and second-hand car prices also rising less steeply than the large increases seen last year."While still at a historically high rate, the costs facing businesses are beginning to rise more slowly, with crude oil prices actually falling in September."Economists at the ONS said rising transport prices slowed significantly last month on the back of cheaper fuel costs.The Bank of England warned last month that inflation is expected to peak in October at just below 11 per cent, following Government support to