In May, Britain’s inflation rate increased marginally from the previous month to 9.1%, a new 40-year high.
(AP) LONDON — According to data released on Wednesday, Britain’s inflation rate rose to a new 40-year high of 9.1% in the year that ended in May as a result of the rising cost of food and gasoline due to Russia’s conflict in Ukraine.
Consumer price inflation, according to the Office for National Statistics, increased marginally from 9% in April, which was already the highest level since 1982.
“Continued sharp food price rises and record high gasoline (gas) prices were countered by apparel expenses growing by less than this time last year, and a decline in the prices of often fluctuating computer games,” according to chief economist Grant Fitzner.
The increase was in line with analysts’ predictions, and it shows that the cost-of-living strain on millions of Britons will not be quickly alleviated. When a cap on home energy costs is hiked in October, the Bank of England predicts inflation will reach 11%.
As a result of “the significant surge in petrol costs over the previous month,” according to Jack Leslie, senior economist at the Resolution Foundation, which studies economic inequality, inflation is projected to increase further in June.
Nobody knows how high inflation could go or how long it will persist, which makes decisions about fiscal and monetary policy particularly difficult, he said.
Globally, inflation is skyrocketing. The 19 nations that utilize the euro experienced a record 8.1% increase in consumer prices in May, while U.S. consumer prices increased by 8.6%, the highest increase since 1981.
To combat inflation, central banks have been raising interest rates. Last week, the U.S. Federal Reserve implemented its highest increase in nearly three decades, while the Bank of England approved its fifth increase since December. For the first time in 11 years, the European Central Bank says it will increase interest rates in July and September.
They are attempting to reduce inflation without delaying or even stopping economic development.
The cost of living is rising for millions of people in Britain and throughout Europe, in part due to the conflict in Ukraine that is depleting supplies of energy and basic foods like wheat.
British workers are feeling the pressure and asking for significant pay rises, which the Conservative administration claims could lead to a spiraling wage-price relationship and increased inflation.
The nation’s largest transit strike in three decades will take place this week, involving tens of thousands of train workers, and could signal the beginning of a summer of unrest in the labor movement.
Read more Business News , Today Politics Headline , Today Finace News Update ,Latest Social News Update , World Highlight , Entertainment Latest News , Today Sports News Update , Latest Education Update , Real Estate Today Update