U.K. CPI hits 11.1% as energy, food price rises pummel consumers

Inflation in the U.K. leaped to a new multi-decade high in October as rising prices for food and energy kept up the relentless pressure on consumers’ disposable incomes.

The Office for National Statistics said the consumer price index rose by 2.0% from September alone, and was up 11.1% from a year earlier, despite efforts by the government to limit the rise in regulated household energy bills. Economists had forecast a monthly gain of 1.7% and an annual rate of 10.7%.

The figures are the latest evidence of U.K. incomes failing to keep up with inflation this year, even though wages too are rising at their fastest pace in 20 years. Data released on Tuesday showed average earnings excluding bonuses rose 5.7% on the year through September.