UK inflation hits new 40-year high of 9.1 pct amid cost-of-living crisis
June 22, 2022, 3:58 pm

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

Selection of vegetables in London market - Pixabay

The British Office for National Statistics (ONS) said Wednesday (June 22), Britain's Consumer Prices Index (CPI) grew by 9.1 percent in the 12 months to May 2022, up from 9 percent in April.

The ONS said the largest contribution came from food and non-alcoholic beverages, compared with a year ago, among which the prices of bread, cereals and meat rose the most, the Xinhua reported.

The ONS said that the biggest downward contributors were the recreation and culture and clothing and footwear.

ONS Chief Economist, Grant Fitzner, said: "The price of goods leaving factories rose at their fastest rate in 45 years, driven by widespread food price rises."

Fitzner added: "The cost of raw materials leapt at their fastest rate on record."

Everyday life in London city, UK (Photo: Pixabay)

On a monthly basis, the CPI rose by 0.7 percent in May, read the ONS data.

Helen Dickinson, Chief Executive of the British Retail Consortium, said: "Households and businesses in the UK are continuing to feel the squeeze from rising prices, as higher energy prices, a tight labor market and increasing transport and commodity costs filter through to consumers."

Britain's inflation has reached new highs successively since last winter and has been far above the 2 percent target set by the central bank, the Bank of England (BoE).

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About a week ago, the BoE estimated that the CPI inflation will rise to slightly above 11 percent in October as the energy price cap is likely to rise again in October.

In order to battle the soaring inflation, the BoE has raised the benchmark interest rate five times in a row since December last year. Now the interest rate stands at 1.25 percent, the highest level since 2009.

BoE policymakers stressed that they will be "particularly alert to indications of more persistent inflationary pressures, and will if necessary act forcefully in response."

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The Resolution Foundation, Britain's independent think-tank, also expressed concerns about "a bigger rise" in the inflation in June and the great pressures on low-income families.

The foundation said that headline inflation for the poorest tenth of households is already in double digits, around 10.3 percent, compared to 8.7 percent for the richest tenth.

Jack Leslie, Senior Economist at the Resolution Foundation, said: "With the economic outlook so unclear, no one knows how high inflation could go, and how long it will continue for - making fiscal and monetary policy judgments particularly tough."

Source: xinhua

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.