Inflation in the United Kingdom (UK) has reached a 40-year high of 9.4% in the year to June 2022.
According to the most recent data from the Office for National Statistics (ONS), the growth was just under the 9.3 percent economists had projected.
The Consumer Prices Index (CPI) rose by 0.8 percent on a monthly basis in June 2022 as opposed to a gain of 0.5 percent in June 2021.
With this news concerning inflation, consumers had to deal with the worst crisis in the cost of living in years as this will add to the stress that they have already placed on household budgets.
According to ONS, the latest CPI number has been slightly higher due primarily to higher gasoline and food prices, which outweighed downward pressures from the second-hand car market and audio-visual equipment.
Inflation in the UK is currently hovering around nearly five times the government-set 2 percent objective for the Bank of England (BoE).
According to the BoE’s projection, inflation will reach a peak of approximately 11% later this year before beginning to decline in 2023.
In his speech to the City of London’s annual Mansion House dinner yesterday, BoE governor Andrew Bailey said that interest rates may go up by half a percentage point in early August while also toughening the language used by the institution to address inflation.
Since December 2021, the BoE has already increased the bank rate five times, bringing it to its current level of 1.25 percent.
The biggest increase in the bank rate since 1995 would be a half-point increase.
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