UK inflation hits 41-year high of 11.1% as Hunt readies budget

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UK inflation hits 41-year high of 11.1% as Hunt readies budget
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Surging household energy bills and food prices pushed British inflation to a new 41-year high in October, according to data published a day before finance minister Jeremy Hunt announces tax hikes and spending cuts to control price growth.

Consumer prices rose by 11.1% in annual terms last month, the highest reading since October 1981 and a big jump from 10.1% in September, the Office for National Statistics said on Wednesday.The ONS said inflation would have risen to around 13.8% in October had the government not intervened to limit the price of household energy bills to 2,500 pounds a year on average.

In response to the data, Hunt - who is due to outline a new budget on Thursday - said "tough but necessary" decisions were required to tackle rising prices.

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