(19 November 2021) Consumer price inflation, a gauge of the cost of living, accelerated in the United Kingdom in October, largely driven by higher energy prices and mounting supply-chain disruptions, reaching the highest level since December 2011.

The U.K. consumer price index rose 4.2% YoY in October following a 3.1% increase in September. The October rise was more than double the target of 2% set by Bank of England. 

  • Household energy costs were one of the biggest contributors to inflation; Ofgem, the British energy regulator, raised the price cap on domestic gas and electricity on October 1, 2021. 
  • Petrol prices also rose in October amid a surge in global energy prices.

The Bank of England's Monetary Policy Committee expects inflation to rise further, to around 5% in the spring of 2022, before falling back towards the target rate as the impact of higher oil and gas prices fades and demand for goods moderates.

Related Insights from Knoema

United States: A Price Storm in Used Car and Car Rental Markets

(17 June 2021) With the US vaccination progress continuing and many anti-COVID restrictions easing, American's driving activity is recovering, and the increased mobility combined with stimulus checks, pent-up demand, and high credit availability have quickly translated into an increase in car sales. Many Americans wanting to buy a car are stumbled on car shortages at auto dealerships, though. This growing demand and lack of supply have already translated into sharp price growth in the used car and car rental markets. According to the US Bureau of Labor Statistics' Consumer Price...

US Inflation Hits 6.8%, a Four-Decade High

(12 December 2021) In November, U.S. consumer price inflation, a measure of the cost of a wide-ranging basket of consumer goods and services, hit its highest year-over-year growth in four decades. Inflation continues to put pressure on households and businesses. The consumer price index was up 6.8% year-over-year in November, largely driven by food, energy and housing prices. Core inflation, which excludes volatile categories such as food and energy, climbed 4.9%, the highest jump since 1991. Food prices were up 6.1% in November, while housing rose 4.8% as disruption in the supply...

G20 Consumer Price Index

The G20 CPI provides a timely measure of inflation for the G20. In the future, the G20 CPI will become part of the regular OECD monthly News Release on CPI at around one month after the reference period. Annual inflation in the G20 area was 3.0% in the year to August 2013, down from 3.2% in the year to July 2013. The G20 CPI aggregate reflects diverging patterns among the world’s largest economies. India, Argentina, Indonesia andTurkey experienced the highest annual inflation rates (equal to or above 8.0%) in August 2013, while Japan, France , Canadaand Italy had the lowest...

The Rise in Global Inflation Threatens World Economy

The latest data on inflation from the World Bank shows that global inflation continues to accelerate. In May 2022, the world consumer price index (CPI) growth accelerated to 8.1% year-over-year. The last time year-over-year global inflation approached 8% was in 2008, when the world economy was stepping in the Great Recession. Knoema's global inflation heat map, based on the World Bank data, reveals the spread of inflation to more and more countries each month. In Dec 2019, among 107 countries in the World Bank's dataset, there were only 5 countries where year-over-year CPI growth...