There had been quiet but growing optimism from some economists that inflation in Britain was nearing its peak as the CPI headline rate had fluctuated slightly – in and out of double digits – over the past few months. But that optimism was put on pause this morning when the Office for National Statistic revealed that inflation rose by a full percentage point from September, taking CPI to 11.1 per cent on the year last month.
CPI is at its highest level since 1981, and above the Bank of England’s most recent prediction for where inflation would peak. Meanwhile, real-terms wage increases are failing to keep up with price hikes. The latest data shows that the average worker is estimated to be experiencing a 3 per cent real-terms pay cut.
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