UK inflation surges to highest rate in nearly a decade as energy costs rise

UK inflation surged to the highest level in nearly a decade in October as energy costs soared and prices rebounded after sharp declines during the early months of the COVID-19 pandemic, according to government statistics released Wednesday.

The Office for National Statistics said consumer price inflation accelerated to 4.2 per cent in the 12 months through October, from 3.1 per cent the previous month. The increase, which was bigger than expected, pushed inflation to the highest level since November 2011.

Gas and electricity prices for millions of households jumped by 12 per cent in October after UK regulators increased the retail price cap to reflect soaring wholesale energy costs. Higher prices for used cars, fuel, restaurant meals and hotel rooms also drove inflation.