UK consumer prices reach 40-year highs

UK consumer prices reach 40-year highs

Consumer prices in Britain jumped by 9% to hit a 40-year high last month, with the biggest price increases seen in food and energy, official figures from the UK’s Office for National Statistics revealed on Wednesday.

The current rise in the consumer price index is the highest since the country started tracking prices in 1989, jumping 2.5% month-on-month. The agency estimates that inflation was higher “sometime around 1982.”

According to a recent survey cited by CNBC, a quarter of UK residents have started to skip meals to save money amid soaring prices. Bank of England Governor Andrew Bailey recently called the current outlook for consumers “apocalyptic.”

Earlier this month, the financial regulator warned that Britons are about to face a “historic” shock to their incomes, as it expects prices to continue rising. The Bank of England also said the cost-of-living crisis could plunge the economy into recession later this year. In order to prevent this, the regulator has hiked interest rates four times so far this year, from its historic low of 0.1% during the Covid-19 pandemic to a 13-year high of 1%. Analysts expect the central bank to hike interest rates further at the upcoming board meetings.

“Unlike in the US, UK inflation continues to rise for the time being, stoking further fears around the cost of living… It will also add to the pressure on the Bank of England to increase interest rates and get to grips with soaring prices even if, as they admit themselves, many of the factors driving inflation are beyond their control,” Richard Carter, the head of fixed interest research at Quilter Cheviot, said in a research note, as cited by CNBC.

Following Wednesday’s inflation report, the British Chambers of Commerce called on the government to introduce measures in order to support consumers and businesses, namely by cutting value added tax on energy bills for businesses and by curbing the recent hike to National Insurance – a tax on income.

The UK is not the only Western country to suffer from soaring prices. The US, Germany, and a number of other nations have seen inflation jump to highs not seen in decades, following the introduction of unprecedented sanctions on Russia. The measures appear to have backfired on some of the countries that imposed sanctions, resulting in skyrocketing prices for food, energy, and other consumer goods.

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

Source: www.rt.com

The last notes - Экономика

most read news

#Экономика

Despite accelerated efforts by Western states to wean their economies off Russian oil and gas, it may take years to replace them, the head of the World Bank has warned.“Under current policies global
подробнее...

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...

The Russian budget will be in deficit from 2023 to 2025, Prime Minister Mikhail Mishustin said at a government meeting on Thursday.“During the entire period, the budget will be in deficit, the main
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...

The German government will take control of Securing Energy for Europe (SEFE), formerly Gazprom Germania, a subsidiary of Russian energy giant Gazprom, Der Spiegel reported on Thursday, citing its
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...

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 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 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...

Russian Deputy Prime Minister Alexander Novak has blamed the European Union for the problems that have prevented the resumption of gas supplies via the Nord Stream 1 pipeline. He told the EU “not to
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...

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...

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...

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...

Pressure in the Nord Stream 2 undersea gas pipeline, which was intended to pump gas from Russia to Germany, dropped from 300 to 7 bars overnight, a spokesperson for the pipeline's operator said on
подробнее...

Over 15,000 German stores are facing bankruptcy due to soaring energy costs, Der Spiegel reported on Friday, citing the German Retail Association (HDE).According to the report, the HDE wrote a letter
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...