The U.K. inflation hikes to a new high of 11.1% as food prices soar, forcing the economy into a recession.

11.1% is the new 40-year record for inflation.

The most recent Consumer Price Index (CPI) result represents a full percentage point increase last month, which is approximately twice as much as experts had anticipated. It is the highest reading since October 1981.

According to the Office for National Statistics (ONS), which released the most recent data, food costs rose to their highest level since 1977, while soaring gas and electricity prices continued to fuel the overall increase.

Chancellor Jeremy Hunt issued a warning as he put the finishing touches on a fiscal statement that is likely to outline measures to raise about £60 billion "to help balance the books" in order to bring inflation under control.

The pandemic's effects and the conflict in Ukraine, according to Mr Hunt, are to blame for the price increase, which is "thwarting any hope of long-term economic progress," he said.

He added: “It is our duty to help the Bank of England in its mission to return inflation to target by acting responsibly with the nation’s finances. That requires some tough but necessary decisions on tax and spending to help balance the books. Followed by, “We cannot have long-term, sustainable growth with high inflation. Tomorrow I will set out a plan to get debt falling, deliver stability, and drive down inflation while protecting the most vulnerable.”

Gas and electricity prices had the biggest increase last month, rising by 23.4%, despite the government programme the Energy Price Guarantee, which was implemented to keep energy costs low. Food costs increased by 16.4%, continuing to rise for staples like tea bags, milk, and sugar. Some of the most well-known branded food items’ prices have doubled in the previous two years as research showed ahead of the inflation data.

Britain is estimated to plunge into recession in the upcoming months, adding to the government's economic woes as violent labour disputes flare, unemployment soars, and employees experience real pay cutbacks due to inflation.

TUC general secretary Frances O'Grady urged policymakers to increase public sector pay above the 2% that is apparently on the table for next year, claiming that the cost-of-living situation was "growing worse by the day."

Mortgage payments may soon increase more for households as the Bank of England is expected to raise interest rates again next month in response to the most recent ONS data, which many analysts believe will result in a half-point increase to 3.5%.

While "core inflation," which excludes volatile food and fuel costs from the calculation, stayed at the same pace as in September, it was still nearly three times the bank's total figure of 5.8%.

In the lead-up to what is sure to be a poor Christmas for sales, retailers pleaded with the chancellor for extra assistance to save high street firms.

The most recent surge in inflation follows a hike in the energy price cap in October as a result of unusually high wholesale costs brought on by Russia's invasion of Ukraine.

The increase in home expenses has been restricted by the government to about £2,500 per year. Energy costs would have increased more than three times as much as they did last month, according to the ONS.

According to the ONS, households are paying an average of 88.9% more for electricity, gas, and other fuels than they were a year ago.

(Sources: independent.co.uk, bbc.co.uk)