Economists taking part in a Reuters poll – many of whom think inflation is probably peaking right now– had expected inflation to rise to 10.7%.
The Inflation would have risen to around 13.8% in October if the government had not intervened for limit the price of energy bills from homes to £2,500 ($2,960) year on average, the ONS said.
In response to the data, hunt – who plans to present a new budget on Thursday – said that there will be “hard but necessary” decisions to deal with the increase in prices.
“It is our duty assist the Bank of England in its mission to bring inflation back to target acting responsibly with the nation’s finances,” he said in a statement.
After knowing the data, the Sterling falls 0.1% against the dollar and it is located at US$1.1850.
Analysts said that the jump kept the pressure on the Bank of England to continue raising interest ratesbut the austerity scale to be announced on Thursday could mean borrowing costs have to rise less.
Ellie HendersonInvestec economist, noted that “the UK is in a rather unique situation where the government is planning a comprehensive program of measures to help balance its accounts“.
“The scale of proposed fiscal tightening will certainly drag down economic growth and as such should bring inflation down with it, opening the door for the Bank of England to tighten monetary policy at a less aggressive pace.”
Source: Ambito
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