IoD press release October’s high CPI inflation rate increases pressure on Chancellor to maintain price support scheme
Commenting on today’s data from the Office of National Statistics, that showed the annual rate of CPI inflation rising from 10.1% in September to 11.1% in October, Kitty Ussher, Chief Economist at the Institute of Directors, said:
“October’s high inflation rate was anticipated, but it is still sobering to see the scale of the impact of high electricity and gas prices on domestic heating bills. Even with the introduction of the household Energy Price Guarantee, the price of household fuels rose by 25% on the month. Without the scheme, the increase in fuel bills would have been 75% in a single month giving an overall CPI inflation rate of 13.8%.
“Continued rises in food costs, particularly dairy, also contributed to October’s high inflation rate, although this was partially offset by a falling contribution from transport – both petrol prices and the cost of second hand cars.
“With the protective effect of the Energy Price Guarantee so apparent in the data, the Chancellor will now be under even greater pressure to maintain the scheme into the foreseeable future.”
