UK inflation hits 41-year high at 11.1%

Britain’s inflation jumped by 11.1 percent that records 41-year high in October exceeding expectations as food, transport and energy prices continued to squeeze households and businesses, the Office for National Statistics said on Wednesday.

This increase came according to data published a day before finance secretary Jeremy Hunt announced tax increases and spending cuts to control price growth.

The sharp increase in living costs was caused by rising gas and electricity prices, despite a government energy price guarantee, which caps energy bills at £2,500 ($2,970) for the typical household.

The National Statistical Office said food and non-alcoholic beverages prices also contributed heavily, which increased by 16.4 percent in the 12 months to October to reach its highest annual rate since September 1977.

Data last week from the Office for National Statistics showed that the UK economy shrank in the third quarter.