- The UK’s inflation might rise to 18.6%, which would be a 50-year high.
- The surge in July was mostly caused by rising food costs
- The office of the prime minister is proposing household supporting policies.
According to the most recent Citigroup prediction, the UK’s inflation might reach a near 50-year high of 18.6% early next year as a result of skyrocketing wholesale gas costs, writes Andrew Michael. Individuals have gone ahead to give out their views suggesting it could be the same reason as to why they haven`t seen any bull run lately. It however now makes sense to them the importance of obtaining crypto fitting the long run.
The cost of living may reach levels not seen since the 1970s, according to the investment bank, as a result of the recent 25% increase in petrol prices. If widespread demands for greater pay materialized, it is said that this would compel the Bank of England to raise the bank rate to 7%, which is four times the current level of 1.75%.
Wholesale natural gas prices in the UK and Europe are trading at close to ten times typical levels, and other analysts have increased their inflation forecasts as a result.
Liz Truss, the front-runner to succeed David Cameron as prime minister of Britain, is expected to propose household-supporting policies that will only slightly offset headline inflation, according to Nabarro.
The Bank of England’s Monetary Policy Committee was likely to come to the conclusion that the risks of more persistent inflation had increased because inflation is now expected to peak at a level significantly higher than the bank’s 13 percent projection from August, according to the note. According to the ONS, the increase in July was mostly caused by rising food costs, particularly those for vegetables, meat, dairy, and bread goods. Other essentials like pet food, toilet paper, toothbrushes, and deodorants all saw price increases as well.
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