Britain’s inflation rate has returned to 10.1%, with the cost of living rising at its fastest pace in 40 years, official figures show.
Inflation — a measure of price increases — rose 9.9% in the 12 months to September, up from August, the Office for National Statistics said.
Rising living costs are eating into household budgets, with prices rising faster than wages.
The Bank of England said inflation could peak at 11% this year.
September inflation numbers are typically used to calculate the increase in the state pension and increase in some benefits next April.
However, it is unclear whether the government still intends to stick with this policy or to cut spending by raising payments to lower levels by linking the increase to wages instead.
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