Inflation at 41-year high ahead of budget

UK inflation soared to a 41-year high of 11.1% last month as rocketing energy and food prices intensified the cost of living crisis, heaping pressure on the Chancellor ahead of his autumn Budget on Thursday.

October's rate of Consumer Prices Index (CPI) inflation was worse than expected, hitting the highest rate since October 1981 and up from 10.1% in September.

Most economists had been expecting a rise to 10.7%.

The leap follows a near 130% surge in gas prices over the past year, with electricity rising by around 66%, while food inflation hit a record high of 16.5%, according to figures from the Office for National Statistics (ONS).

The jump in inflation comes despite the Government energy support, which has sought to limit annual household gas and electricity bills at around £2,500 a year.

Prime Minister Rishi Sunak said inflation was the "enemy we need to face down" but insisted the decisions in Thursday's autumn statement would be "based on fairness, they will be based on compassion." 

But fears are mounting over the impact on already struggling households and businesses, with Chancellor Jeremy Hunt expected to unleash tax hikes and spending cuts to address a black hole in the nation's finances.