Inflation in the UK exceeds 10% and reaches highest level in 40 years

Rising food and energy prices in Europe due to Russian invasion of Ukraine strongly influence current results

REUTERS/Neil Hall

UK hits most inflation in 40 years

The inflation rate in UK reached 10.1% on an annual basis in July and reached the highest level in 40 years, reported the National Statistics Office (ONS). The last big record was in February 1982. The reading was above the forecasts of economists polled in a Reuters poll, who had expected inflation to reach 9.8% in July. The increase in food prices had a strong influence on current results. “Food is up in particular, especially bakery, dairy, meat and vegetables,” explained Grant Fitzner, chief economist at ONS, on Twitter. The price rise could exceed 13% in October, when drastic increases in energy prices are forecast, according to Bank of England forecasts. The UK is not the only country facing rising prices, but there are signs it will continue to struggle with rising inflation for longer than others as it faces a cost-of-living crisis, with wages not keeping pace with inflation. . The rise in energy prices in the Europe after the Russian invasion of Ukraine it is the main driver of inflation and is expected to push the UK into a long, if shallow, recession later this year, according to the Bank of England.

*With information from AFP and Reuters

Source: Jovempan

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