much higher than a year ago, but lower than many economists feared. andy verity, bbc news, stroud. joining me now is carl emmerson, the deputy director of the institute for fiscal studies, which is a leading economic research group. thank you forjoining us. 11.1%, is that about what you expected, or hire perhaps? i think it s a little higher than many expected but what really matters is the size of the increase was expected to be large, it is a bit bigger than that, we are seeing inflation running at rates we have not experienced for over 40 years and inflation is affecting everyone, it is energy bills, it is food,it everyone, it is energy bills, it is food, it is bills and it is inflation which will affect those who spend more of their budgets on those things more. so who spend more of their budgets on those things more. 50 if who spend more of their budgets on those things more. those things more. so if you are a pensioner. those things more. so if you are a pensioner. if those
want to hear from you today on how your healing with the pressures of increasing prices dealing with. 11.1%. what do you think is the right strategy for the government? what would you like to see the government doing to help you with the rising cost of living? ben boulous is at a bakery in gloucester for us this morning to explain more. 6ood good morning. this is the figure we have all been waiting to find out. as you say, 11.1% of the is the rate of inflation for october, we learned in the last few hours this morning. that is the average rise in the cost of goods and services that we typically spend our money on. and that s how much it has gone up compared with a year earlier. so essentially, if you spend £100 on a range of things, a year ago, that same range of things on average would now cost you £111. the rise very much driven by the rising cost of food and energy. of course in
reducing how much time our ovens are on. , ., . ., reducing how much time our ovens are on. , ., on. i ve just noticed over your shoulder on. i ve just noticed over your shoulder there on. i ve just noticed over your shoulder there are on. i ve just noticed over your shoulder there are two - on. i ve just noticed over your| shoulder there are two ovens, on. i ve just noticed over your i shoulder there are two ovens, one has the lights on and one of them is off, is that the kind of decision? normally we would have both on when the customers come in we are ready to go but we have looked at sales in all of our shops. all of our shops. some of the many chefs in our all of our shops. some of the many chefs in our shops all of our shops. some of the many chefs in our shops are all of our shops. some of the many chefs in our shops are only - all of our shops. some of the many chefs in our shops are only going . all of our shops. some of the many| chefs in our shops are only goi
here s what he had to say. two thirds of the global economy or 620 members seeing inflation rates above 10% at the moment. rates above 7% at the moment. the imf thinks a third of the global economy either is or will be in recession. but that is the global context, that s what s dominated the conversations that i ve been having here. and we know why that is, it s the legacy of covid and it s, of course, what putin is doing that is driving up energy and, indeed, prices. is driving up energy and, indeed, food prices. we talked to some of my colleagues from africa and what they re grappling with, they re very cognisant of that. that s the global economic context and that s what s dominating what s happening. every country will have idiosyncratic things but those are the overwhelming, dominating factors that are leading to the economic challenge that we re facing at the moment. it s people and businesses really feeling the impact of those rising interest rates. 0ur economics correspondent,
higher and that inflict more pain on households and businesses. to what extent do you think it is inevitable interest rates will increase further because of this increase in inflation, and perhapsjust explain for our viewers the link between those two. the link is that the economy is running pretty hot, the labour market is running pretty hot, we can see supply shortages in many parts of the economy, so what the bank of england is doing is seeing the high inflation and saying we have to put up interest rates to take money out of the economy. what is important as the chancellor isn t doing too much to work against them because of the temptation which is clearly to say we need to do more to support households and businesses through this difficult time. the ultimate cause of much of this is essentially the price of energy which we import as a country has gone up a lot making the country poorer and it s the adjustment to being a bit poorer than what we wished we were going to be which is g