Inflation soars to 11.1% in new 40-year-high

Inflation has recently been described as a ‘constant foe’ following reports it will destroy £184billion of the UK’s cash savings this year – even after interested income is added.This is double the previous record set in 2021, and is more than total value of UK family savings lost to inflation in the 12 years from 2009 to 2020 combined, according to Janus Henderson Investors.Suren Thiru, economics director for ICAEW, warned: “October’s hefty rise in inflation, fuelled by another punishing jump in energy bills, is pulling us closer to a damaging recession.’Although it’s possible that the headline rate has now peaked, the Autumn Statement could significantly alter the outlook for inflation. While major spending cuts and tax rises could choke off demand in the economy, last month’s inflationary surge could be surpassed in April if the Chancellor substantially scales back the energy support package.READ MORE: ‘Living’ state pension could create ‘adequate income’ for pensioners