Inflation in the UK accelerated to the highest since 1981

According to the British Office for National Statistics, inflation in Great Britain accelerated to 11.1% in annual terms in October, which was the highest since 1981. 

The rate of acceleration of inflation turned out to be higher than the expectations of experts, who predicted a price increase of 10.7%. In August, inflation was 9.9%, and in September – 10.1%.

Analysts call the increase in electricity tariffs the main driver of price growth. In addition, the rise in food prices had a strong impact on the dynamics of inflation. In particular, products in October rose in price by 16.4%, which was the highest in 45 years. The prices of milk, cheese and eggs have soared the most.

Thus, if we consider the poorest British families with a low level of expenses, who spend most of their earnings on paying bills and buying groceries, then for them the increase in inflation was more than 16% in October. The ONS also estimated that middle-income Britons spend about a third of the family budget for these purposes.

In the autumn, the British economy entered a recession, and the head of the Ministry of Finance of the kingdom said that Russia was responsible for this. According to him, it was Moscow that created a situation in the world that led to inflation and an increase in interest rates.