Britain's inflation hits fresh 40-year high as fuel and food prices surge

Britain's inflation hits fresh 40-year high as fuel and food prices surge
July 20, 2022, 6:24 pm

Outdoor market in London, UK (Photo: Pixabay)

UK official statistics showed on Wednesday (July 20) that amid rising prices for motor fuels and food, Britain's Consumer Prices Index (CPI) rose by 9.4 percent in the 12 months to June, hitting a fresh 40-year high.

According to the Office for National Statistics (ONS), on a monthly basis, the country's CPI rose by 0.8 percent in June 2022, compared with a rise of 0.5 percent in June 2021.

Grant Fitzner, ONS chief economist, said that the increase in annual inflation was driven by rising fuel and food prices, and these were only slightly offset by falling second-hand car prices.

The annual increase for transport was 15.2 percent in June 2022, compared with a minus 1.5 percent in June 2020 during the first COVID-19 lockdown. Within transport, the price of motor fuels saw a 42.3 percent rise on the year.

According to the ONS, food and non-alcoholic beverage prices have risen by 9.8 percent in the year to June 2022, the highest rate since March 2009.

The Bank of England (BoE), the country's central bank, expected inflation to rise above 11 percent in October alongside a widely anticipated huge increase in the energy price cap.

UK inflation hits new 40-year high of 9.1 pct amid cost-of-living crisis

To tackle inflation, the BoE has raised its benchmark interest rate to 1.25 percent, the highest level since 2009.

BoE governor Andrew Bailey has recently said that "there are no ifs or buts in our commitment" to the 2 percent inflation target and "a 50 basis point increase will be among the choices on the table when we next meet" in August.

Source: xinhua

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