Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Inflation hits 11.1% as Rishi Sunak brands it the ‘enemy we need to face down’ - but he has no idea how to solve it

Inflation hits 11.1% as Rishi Sunak brands it the ‘enemy we need to face down’ - but he has no idea how to solve it

Energy bills drive inflation to 41-year high, but Sunak has no idea how solve as PM the economic disaster that he created as the chancellor.
Soaring inflation is the “enemy that we need to face down,” Rishi Sunak warned on Wednesday as it spiralled above 11 per cent.

The Prime Minister stressed that getting it under control was his “No1 priority”.

Official figures showed CPI inflation rose to an eye-watering 11.1 per cent in October, up from 10.1 per cent a month earlier, according to the Office for National Statistics.

Speaking at a G20 summit in Bali, Indonesia, Mr Sunak stressed that inflation was “eating into people’s living standards” and making them poorer.

He added: “It’s the enemy that we need to face down.”

The Prime Minister emphasised that Chancellor Jeremy Hunt would set out a plan to “grip” inflation in his Autumn Statement on Thursday which is expected to include more than £20 billion of tax rises and at least £30 billion of spending cuts to get Britain’s public finances back on an even keel.

He added: “My absolute number one priority is making sure that we deal with the economic situation that we face at home.

“With more news of inflation today, it’s the number one thing that’s on people’s minds.

“It’s the thing that’s causing most anxiety, opening up bills, seeing the emails come in with rising prices. And that’s why it’s right that we grip it.

“And tomorrow the Chancellor will set out a plan that will enable us to do that.”

However, many MPs have warned that Britain is set to be hit with a new wave of austerity and a worsening cost-of-living squeeze as taxes rise.

Economists blame the UK’s economic crisis on Vladimir Putin’s war in Ukraine, the aftermath of the Covid pandemic, Brexit and Kwasi Kwarteng’s disastrous mini-budget in September.

The official figures showed the rate of inflation surged to a new 40-year high, dramatically tightening the cost of living squeeze on millions of families.

Prices have not been rising faster since October 1981. In October alone prices rose by 2 per cent, the same increase as the whole year to July 2021.

The higher than expected increase will pile pressure on the Bank of England to order another a big rise in interest rates next month to rein prices in - but that will raise mortgage costs for homeowners and risk a deeper recession.

It was fuelled by energy prices which jumped to an average of £2,500 under the Government’s Energy Price Guarantee on October 1 following a surge in wholesale gas prices triggered by the Ukraine war.

Supermarket prices have also been rising at double digit rates. On Wednesday, the ONS said food prices were 16.4 per cent higher in October.

City economists hope that the grim October inflation figures marks the high point of the current cycle and that the CPI will now gradually subside. The cost of living has been rising far quicker than wages and benefits, making most people worse off.

On Tuesday, the ONS revealed the average pay fell 3.7 per cent in real terms in the three months to September compared with the CPI. That was the biggest drop in the value of earnings since the financial crisis in 2009. Benefits only went up 3.1 per cent this year but are expected to be increased in line with inflation next year.

The inflation spike comes on the eve of Jeremy Hunt’s Autumn Statement where the Chancellor is expected to unleash a “fiscal consolidation” of up to £60 billion to bring the public finances back under control. This will be through a mix of Government spending cuts and tax hikes.

Mr Hunt, on Wednesday, said: “The aftershock of Covid and Putin’s invasion of Ukraine is driving up inflation in the UK and around the world. This insidious tax is eating into pay cheques, household budgets and savings, while thwarting any chance of long-term economic growth.

“It is our duty to help the Bank of England in their mission to return inflation to target by acting responsibly with the nation’s finances. That requires some tough but necessary decisions on tax and spending to help balance the books.

“We cannot have long-term, sustainable growth with high inflation. Tomorrow I will set out a plan to get debt falling, deliver stability, and drive down inflation while protecting the most vulnerable.”

Shadow Chancellor Rachel Reeves said: “Inflation rising yet again will strike more fear in the heart of families across Britain dealing with soaring food prices, rising energy bills and a Tory mortgage premium on their home.

“British people feel the impact of rising inflation so much more than other countries because 12 years of Tory economic failure has left us exposed to any shocks.

“The potent mix of high inflation and low growth is trapping us in a vicious cycle of stagnation.

“In the Autumn Statement this week, Labour would be focused on making fairer choices for working people who are bearing the brunt of this crisis - and putting forward a real plan to grow our economy.

“Labour’s Green Prosperity Plan, our modern Industrial Strategy and our active partnership with business will get our economy firing on all cylinders.”
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Druzhba Pipeline Incident Sparks Geopolitical Tensions
Cost of Opposition Leader Péter Magyar's Economic Plan Revealed
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
Budapest Central European Fashion Week Kicks Off
U.S. Celebrates Labor Day
Hungarian National Team Captain Scores Epic Goal
EU is getting aggressive: Four AfD Candidates Die Unexpectedly Ahead of North Rhine-Westphalia Local Elections
Japanese Customer Sways from VW to BYD after “Unbelievable” Test Drive amid Dealership Expansion
Nestlé Removes CEO Laurent Freixe Following Undisclosed Relationship with Subordinate
Pickles are the latest craze among Generation Z in the United States.
Giuliani Seriously Injured in Accident – Trump to Award Him the Presidential Medal of Freedom
Deadline Day Delivers Record £125m Isak Move and Donnarumma to City
Nvidia Reveals: Two Mystery Customers Account for About 40% of Revenue
Woody Allen: "I Would Be Happy to Direct Trump Again in a Film"
Lula and Putin Hold Strategic BRICS Discussions Ahead of Trump–Putin Summit
White House Eyes Budapest for Peace Talks
Cave Diving Beneath the Streets of Budapest
Another American Restaurant Chain Opens in Budapest
Hungarian Opposition Politician Supports Ukrainian Commander
Opposition Leader Threatens Media Outlets
American Airlines Adds New Flights to Budapest
F1 Hungarian Grand Prix Wraps Up
WhatsApp is rolling out a feature that looks a lot like Telegram.
U.S. Trade Representative says Washington still negotiating trade deals after court rules tariffs illegal
Von der Leyen says Europe drawing up 'precise' plans to send troops to Ukraine
Kremlin accuses Europe of hindering Trump’s peace efforts in Ukraine
×