British currency money cash
British currency money cashiStock

Inflation rose to the highest level in nearly a decade in Britain, according to a new report by the Bank of England.

The annually adjusted consumer price index in Britain rose to 4.2% in October, the Office of National Statistics said Wednesday morning.

The Bank of England warned that interest rate hikes may be required in the coming months to curb rising inflation.

"Inflation rose steeply in October to its highest rate in nearly a decade,” said chief ONS economist Grant Fitzner.

Fitzner said the spike in inflation was driven in part by rising energy costs, including both the cost of electricity for residential units, as well as the price of automobile fuel. He also said significant increases were seen in the cost of hotel accomodations, restaurants meals, and second-hand cars.

Prices of raw materials also rose significantly, as did factory-produced goods.