Inflation soars again

Inflation levels for the months of September soared again according to government figures, with inflation reaching 5.2%, which is its highest level in sixteen years. Inflation has been rocketing for some time now, and has spiralled way higher than the 2% target that has been set by the government.

Officials have said that amongst the factors that have pushed inflation up are rising energy prices, soaring food costs, and the recently sky high price of oil. However, officials are now hoping that inflation has peaked and from hereon will start to fall, giving the Bank of England more leverage to cut the interest rate, which many think will plummet over the coming six months.

One economist stated: “CPI was once again rather worse than expected in September, but this will be the peak in inflation. The key issue now is just how far and fast it will drop back as the food and energy effects which have pushed it up so sharply over the last year finally fade or go into reverse.”

Another official said that many consumers were managing to save money on the cost of food by shopping around, comparing prices, and looking at cheaper alternatives to their normal products. However, he added: “The bad news is extraordinary increases in gas and electricity prices are wiping out these gains, pushing overall inflation higher and hurting hard-pressed families and retailers of all sizes.”