Soaring food prices push UK inflation back to 40-year high

The biggest jump in food prices since 1980 pushed British inflation back into double digits last month, matching a 40-year high hit in July in a new blow for households grappling with a cost-of-living crisis. The Office for National Statistics said the consumer price index (CPI) increased by 10.1% in annual terms in September. A Reuters poll of economists had pointed to a reading of 10.0%, after a 9.9% rise in August. The pound slipped below $1.13 on the news and was last down 0.2% on the day. The figures hammered home the difficult environment for British households, especially those on the lowest incomes, who face new uncertainty about the extent of financial support available to them after recent government U-turns. The Bank of England will also feel under pressure to step up its interest rate hiking campaign next month in light of Wednesday's data. (Source Reuters)