Inflation: UK prices soar at fastest rate for almost ten years

The cost of living has surged at its fastest pace in almost 10 years, hitting 4.2% in the year to October.

It is mainly due to higher fuel and energy prices but the cost of second-hand cars and eating out also rose, the Office for National Statistics said.

Inflation is up sharply since Covid restrictions ended this year and the economy reopened.

The Bank of England says it may have to raise interest rates in the “coming months” to tackle rising prices.

October’s reading is far higher than the 3.1% rise recorded in the year to September and more than double the Bank’s target of 2%.

Household energy bills were the biggest driver of inflation after Ofgem, the energy regulator, lifted the price cap on domestic gas and electricity last month.

It meant that gas bills rose by 28.1% in the year to October, while electricity climbed by 18.8%.

Petrol prices also rose by 25.4p to 138.6p per litre amid a surge in global oil prices. That’s the highest price since September 2012.

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Thursday Blog
January 20, 2022

Tommys Blog

Wednesday i was stopped out in AUDGBP at 0.5300 still locking in a small profit, this was mainly due to strong employment figures coming out of Australia. I do believe this pair is still vulnerable to the downside however i will now wait to see what the UK Retail Sales are like tomorrow morning before I potentially look […]


Monday Blog
January 17, 2022

Tommys Blog

AUDGBP starts this week trading at 0.5275 after a contained fall from lasts weeks high of 0.5325 on Thursday. This is a data heavy week for sterling leading me to lower my stop loss to 0.5300 to lock in profit already created and tighten up my parameters ahead of these events. On the other hand Australia are still […]


Thursday Blog
January 13, 2022

Tommys Blog

On Tuesday we saw very strong AUD Retail Sales which led to a nice climb in AUDGBP through the week up towards 0.5320. This provided a good opportunity to sell the pair, as I mentioned on Monday. Fortunately i managed to sell up here at the weeks high with my stop loss set at 0.5355, […]


Monday Blog
January 10, 2022

Tommys Blog

It’s been a very quiet start to the year regarding FX with many pairs stuck in a range. However, hopefully this begins to change as we move through Q1, especially with more central bank activity such as further rate hikes. Richard highlighted how weak the AUD looked technically, especially with Australia struggling with lockdowns still […]


Monday Blog
December 13, 2021

Tommys Blog

This week is full of economic data and events taking place across the board, including the Fed, ECB and BoE meetings. However, with omicron almost doubling each day in the UK and muddying the waters here, my attention has now moved towards the AUD. I favour a stronger AUD as commodities re on the rise, […]


Thursday Blog
December 9, 2021

Yesterday I took healthy profit in cable at 1.3210 and will remain all square as we head into the weekend. The 1.3200 level has been tested various times this week and has held thus far, so if we close lower on Friday downside momentum is likely to pick up. With further lockdown restrictions in the U.K. i […]


Monday Blog
December 6, 2021

Tommys Blog

The pound still looks weaker compared to other currencies, especially the US, as MPC members continue to doubt the timing of the first rate hike. I remain short of GBPUSD at 1.3330 from last week but have locked in some profit by moving my stop loss down to 1.3290. The next key resistance of 1.3202 […]


Thursday Blog
December 2, 2021

Tommys Blog

GBPUSD is still trading within its range this week, between 1.3250 and 1.3350, and I have remained short of the pair at 1.3330 as i do like it to break lower out of this range soon . I have a tight stop at 1.3360 as a break of trend upwards could see it accelerate through the figure, so more cautious […]


Monday Blog
November 29, 2021

Tommys Blog

Uncertainty is creeping back into markets as a new Covid variant Omicron has been identified, so a spike in volatility is to be expected. While its still very early days, this variant seems to be spreading quickly within the U.K. which is now reporting more and more cases. On top of this Richard was also […]


Thursday Blog
November 18, 2021

Tommys Blog

I still remain all square as we move into the latter part of the week. However, I still see a lower euro even though it is substantially down across the board this week. Yesterday we saw EURGBP break below 0.8400 for the first time since February 2020, exacerbated by very strong UK CPI figures released […]


Monday Blog
November 15, 2021

USD still looking the strongest out of the G10. However, , I bought back the rest of my cable at 1.3440 because, as was mentioned in the SNPMO, Sterling’s technicals have seen a slight improvement and we could see a correction this week (Especially when you also take into consideration a more hawkish Bailey yesterday , saying a hike in December is […]


Thursday Blog
November 11, 2021

Tommys Blog

A very volatile week up to this point with cable falling down below 1.3400, breaking through key support of 1.3412 (However it will need to close below this level for further bearish sentiment to continue.) This is mainly due to US CPI jumping 6.2% in October which is the largest increase since 1990. These figures alone speak […]


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