Christmas stretch: UK inflation highest in nearly a decade

By PAN PYLAS
Associated Press

LONDON (AP) — Consumer prices in the United Kingdom surged at the fastest rate in nearly a decade in October amid soaring energy costs. The development Wednesday has cemented market expectations that the Bank of England will raise interest rates next month. The Office for National Statistics says inflation accelerated to 4.2% in the 12 months through October, from 3.1% the previous month. The bigger-than-expected increase pushed inflation to its highest level since November 2011 and means most people will be enduring a drop in living standards in the run-up to Christmas as household incomes get stretched.