Blitz Bureau
Arise in energy bills has pushed UK inflation to its highest rate for six months, BBC reported. The inflation rate rose by more than expected to 2.3 per cent, up from 1.7 per cent in September.
Annual gas and electricity bills for a typical household went up by about £149 last month although prices are rising much more slowly than in recent years. The latest inflation figure comes after the government revealed that an additional 50,000 pensioners will be living in relative poverty next year as a result of cuts to the winter fuel allowance.
Higher inflation raises the cost of living, and can lead to interest rates remaining at a higher level, making the cost of loans, credit cards and mortgages, more expensive.
Inflation has fallen from its peak in October 2022. Prices are not falling, but are now rising less quickly, the agency said.
The BBC further said that there are concerns that the cost of living will rise further, with firms warning they will raise prices to cover new taxes in the Budget and, due to potential trade taxes imposed by the US, with Donald Trump pledging a 20 per cent tariff on all imports.
With temperatures dropping to freezing levels, the cost of heating is likely to become a concern for many households.
Although there has been a jump in electricity and gas costs, energy prices are still lower than last winter. People using a typical amount of gas and electricity are currently paying £1,717 under the energy price cap, which is set by the regulator Ofgem.
Derek Lickorish, chairman of energy supplier Utilita, said he had seen a 60% increase in customers asking the company for help with bills
