UK inflation surges to a new record high of 4.2%, beating expectations

The cost of living in the U.K. surged to a new record high in October, with the figure now more than double the target set by the Bank of England.

Economists polled by Reuters had a expected a figure of 3.9%.

The Bank of England held interest rates steady earlier this month, defying many investors' expectations that it would become the first major central bank to hike rates following the coronavirus pandemic. The Bank has been monitoring a confluence of crucial data points as inflation remains persistently high while economic growth moderates and labor conditions tighten.

The Bank of England now expects inflation to rise further to around 5% in the spring of 2022 before falling back toward its 2% target by late 2023, as the impact of higher oil and gas prices fades and demand for goods moderates.

Euro zone inflation hit a new 13-year high in October, at 4.1%, as the currency bloc battles surging energy costs.

This was the highest level since July 2008, according to Reuters data, and was ahead of a consensus forecast of 3.7%. September's figure had come in at 3.4%.

—CNBC's Elliot Smith contributed to this article.