Inflation in UK

The “Global Times” magazine published a cartoon titled “Unbridled Inflation”, depicting the British pound, which cannot handle the daily necessities of life in the UK due to the rising and high-speed inflation.

According to the British Statistics Office, the price of food and energy has raised the inflation rate in this country to the highest level in the last 41 years.

Food and soft drink prices in the UK rose at the fastest rate since 1977 in October.

In this way, the high cost of food and energy has pushed UK inflation to its highest level in the last 41 years. According to the ONS report in London last Wednesday, consumer prices in October were 11.1% higher than the same month last year.

The UK inflation jump is mainly due to higher energy prices, which have increased for most households despite the UK government capping energy prices from October 1. Electricity prices rose 65.7 percent year-on-year after rising 54 percent in September. Gas prices increased by 128.9% after 95.7% in the previous month.

This situation hit the lower income groups hard. In response to the data, UK Treasury Secretary Jeremy Hunt said tough but necessary decisions were needed to tackle rising prices.

The Bank of England recently braced itself for high inflation with the biggest interest rate hike in decades, raising the key monetary policy rate by 0.75 basis points to 3.0%. This was the sharpest increase since 1989. The Bank of England has been targeting an inflation rate of 2%, but has long missed that target.

By Admin