Inflation in the UK hit a 40-year high in July due to rising food prices, raising the prospect of a recession in the country. According to t...
Inflation in the UK hit a 40-year high in July due to rising food prices, raising the prospect of a recession in the country.
According to the foreign news agency 'AFP', the Statistics Office said that the Consumer Price Index (CPI) rose sharply to 10.1% last month from 9.4% recorded in June, followed by c. PI reached a 40-year historical high.
The Bank of England warned earlier this month that inflation could reach 13 percent this year, the highest level since 1980.
Last week, official figures showed Britain's economy shrank for a second consecutive quarter, adding that the UK could be in recession that could last until the end of 2023.
Also Read: UK Inflation Hits 30-Year High at 6.2%
After the release of the latest inflation data, Finance Minister Nadeem Zahavi said, "I can understand that these are difficult times, people are worried about the price hike that the whole world is facing.
Nadeem Zahavi further said that controlling inflation is my first priority, we are taking strong measures through liberal monetary policy, tax and expenditure decisions, along with this we are also making reforms to increase production and increase growth rate. .
He said that the government is helping people through a support package of 37 billion.
Britain is facing a cost of living crisis, with wages falling at a record pace.
The worsening economy will be left to his successor when Prime Minister Boris Johnson steps down next month, with fellow Conservatives Liz Truss and Rishi Sink vying to take the reins.
Read more: Inflation hits 21-month high at 12.3%
The central bank raised the key interest rate by 50 basis points to 1.75 percent at the last policy meeting, the biggest increase since 1995.
The move by the Bank of England reflects aggressive monetary policies by the US Federal Reserve and the European Central Bank last month, as the world grapples with inflation fueled by Russia's invasion of Ukraine.
The Bureau of Statistics said that the highest increase in inflation in July was due to food items.
Bread and cereal prices rose the most, followed by milk, cheese and eggs.
Also Read: Inflation hits 20-month high in November
ONS Chief Economist Grant Fitzner said the increase was due to higher food prices.
He further said that the increase in prices of other essential items, such as pet food, toilet roll, toothbrush and others in July, led to inflation.
Grant Fitzner said the holiday also drove up prices for excursion packages and airline fares.
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