Prices rose 11.1% last month as the cost of living crisis deepened for households, up from a 10.1% rise the previous month, according to the Office for National Statistics. It was the highest rate of inflation since 1981, while the cost of living rose 2% compared to the previous month. The latest increase is due to the biggest rise in grocery bills since the late 1970s and higher energy costs, even after the government introduced a £2,500 cap on average gas and electricity prices. 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 rose 48pc, rose cheese 27pc and pasta and couscous rose 34pc. The consumer price index gauge of inflation had reached 10.1% last month, having returned to a previous high in July after unexpectedly falling to 9.9% in August. The latest rise in the year to October will hit consumers as they prepare for the Chancellor’s autumn statement on Thursday. Jeremy Hunt 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 at its December 15 meeting, after rising 0.75 of a percentage point to 3% earlier in the month, to a 14-month high years. Gas and electricity prices were the biggest factor. This chart shows how inflation has risen over the past two years:
