UK sees highest inflation in 30 years

UK sees highest inflation in 30 years

The annual rate of inflation in the United Kingdom shot up 7% in March, the highest level recorded since 1992, according to the Office for National Statistics (ONS).

Data released on Wednesday showed that the largest contributors to the trend were increased fuel prices and energy bills.

The consumer price index (CPI) rose from 6.2% in February and was higher than expected, with economists having predicted a rate of 6.7%. The 7% increase is the highest since March 1992, the ONS said.

From April 1, the UK energy regulator increased the household energy price cap by 54% following a surge in energy prices, including a record rise in global gas prices. Liquid fuel prices have more than doubled over the past year, up 113.9%, driving up costs for families who rely on oil to heat their homes, while motor fuel was up 30%.

According to the ONS, average petrol prices grew by 12.6 pence a liter between February and March, the largest monthly increase since records began in 1990. This compares with a rise of 3.5 pence a liter between the same months of 2021. Diesel prices saw spikes of 18.8 pence a liter.

British inflation rates are likely to rise and remain at record highs throughout 2022, according to Boris Glass, senior economist and director at S&P Global Ratings.

“The raising of the cap on household energy bills will add an extra point or so by the end of this month. The surge in inflation will hit household budgets hard, especially those on lower incomes who have now exhausted pandemic savings,” Glass said in an email Wednesday, seen by The Guardian.

“Whilst the short term is set to be painful, the bulk of high inflation should start falling as early as next winter, if global energy prices do not continue to rise further,” he added.

For more stories on economy & finance visit RT's business section

Source: www.rt.com

The last notes - Экономика

most read news

#Экономика

Electricity prices in Germany are expected to jump to record highs next year, the Neue Osnabrucker Zeitung newspaper reported on Friday, citing the country’s local public utilities association
подробнее...

Russia has huge natural gas reserves that could last for more than a century, the head of state-owned Gazprom, Alexey Miller, said on Wednesday at the International Business Congress. “Our consumers,
подробнее...

One in six Italians, or up to nine million people, could sink into energy poverty due to soaring bills across the EU, Italy’s ANSA news agency reported on Saturday, citing the Italian General
подробнее...

The finance ministers of the Group of Seven influential nations announced on Friday their intention to ban maritime services transporting Russian oil if its price is not approved by ‘international
подробнее...

The Central Bank of Russia (CBR) is considering creating a compensation fund for local investors whose assets have been frozen by Western nations, Governor Elvira Nabiullina said on Thursday during
подробнее...

Russian energy major Gazprom's stock jumped 31% on Wednesday to 267.25 rubles per share (just over $4.43) on the Moscow Exchange, following the company’s announcement of bumper profits and dividend
подробнее...

Japanese automaker Toyota has decided to shut down its plant in St. Petersburg, Russia's Ministry of Industry and Trade said in a statement on Friday.The company vowed to fulfill all of its social
подробнее...

Washington has imposed restrictions on the sale of certain high-tech computer chips to Russia and China, a number of US media outlets reported on Thursday, citing two major US chipmakers, Nvidia and
подробнее...

Major European ports have signaled their readiness to facilitate the export of Russian fertilizers, UN Secretary-General Antonio Guterres said in an interview with RIA Novosti, published on
подробнее...

Nicaragua is ready to explore the use of the Mir payment system, developed by Moscow in response to Western sanctions, and allow the use of Russian credit and debit cards in the country, its minister
подробнее...

The Bank of Russia (CBR) is against the legalization of crypto-exchanges, exchangers and settlements in cryptocurrency within the country, RIA Novosti reported on Monday, citing the regulator’s press
подробнее...

One of Russia’s top banks, VTB has become the first lender in the country to launch money transfers to China in yuan, sidestepping the Western-controlled global financial messaging system SWIFT.“The
подробнее...

The proposal by the EU to place a price cap on Russian natural gas imports is a foolish, non-market-oriented plan that has no future, Russian President Vladimir Putin said on Wednesday.“Faced with
подробнее...

The share of Russian gas in the European Union market has plummeted from 50% to 9% since the beginning of the current year, French President Emmanuel Macron said on Monday. Russian gas imports by EU
подробнее...

The Moldovan government has launched a special website which will help citizens find firewood to heat their homes, authorities announced this week.“The site provides information about the nearest
подробнее...

Sri Lankan Transport Minister Bandula Gunawardane on Saturday apologized on the behalf of his country for detaining a Russian plane earlier this year that caused Moscow to suspend flights to the
подробнее...

Ukraine is ready to provide up to 30 billion cubic meters of his country’s gas storage facilities to the EU member states, according to the country’s Prime Minister Denis Shmigal.“We can offer our
подробнее...

The intense pressure placed on Russia by Western sanctions has forced the country to ramp up efforts to launch new factories and enterprises, according to Executive Director of the Russian-Chinese
подробнее...