Rising costs of dairy, pasta and energy pushed inflation to a new four-decade high in October, despite government help to lower bills.
According to the Office for National Statistics, prices rose 11.1% last month as the cost of living crisis deepened for households, compared with a 10.1% rise in previous month
It was the highest rate of inflation since 1981, while the cost of living rose 2% from the previous month.
The latest rise was driven by the biggest rise in grocery bills since the late 1970s and higher energy costs, even after the Government introduced a £2,500 cap on prices means of gas and electricity.
Food prices rose 16.5% year-on-year after a huge jump in the price of milk, cheese, pasta, eggs and oils. Low-fat milk was up 48 percent, cheese was up 27 percent, and pasta and couscous was up 34 percent.
The consumer price index measure of inflation had reached 10.1% last month, having returned to its previous peak in July after unexpectedly falling to 9.9% in August.
The last rise for the year to October will hit consumers as they prepare for the Chancellor’s Autumn Statement on Thursday.
Jeremy Hunt has warned that “we will be asking everyone to contribute more”.
Rising inflation will also put pressure on the Bank of England to keep raising interest rates when it meets on December 15, following its 0.75 percentage point increase to 3% earlier this month. reaching its highest level in 14 years.
Gas and electricity prices were the biggest factor. This chart shows how inflation has risen over the past two years: