- In July, the UK’s inflation rate increased sharply to 10.1%.
- Consumer price inflation has been driven by higher food prices.
- British central bank predicted the future of the rates.
UK inflation accelerated more than expected last month to the highest in 40 years, intensifying a squeeze on consumers and adding to pressure for action from the government and Bank of England. The Consumer Prices Index rose 10.1% in July from a year earlier after a 9.4% gain the month before, the Office for National Statistics said Wednesday. The reading was higher than expected by both the BOE and private-sector economists.
Core inflation, which excludes items like energy, food, alcohol, and tobacco, was higher than expected at 6.2% in the year ending in July 2022, rising from 5.8% in June. Following the announcement, British 2-year yields Gilt rates spiked on Wednesday morning, rising more than 26 basis points to reach 2.41%, which is the highest level since November 2008. According to the ONS’s study, the increase in food prices between June and July had the biggest impact on annual inflation rates.
Supermarkets have had little choice but to pass on price increases from suppliers, themselves contending with unprecedented inflation in raw material and ingredient input costsKien Tan, director of retail strategy at PwC.
The Bank of England announced a 50 basis point increase in interest rates earlier this month, taking the rate to 1.75%, which is the highest increase in three decades. The British central bank predicted that between now and 2023, inflation rates will stay “quite substantial.”
Recommended News :
Crypto News Land (cryptonewsland.com) , also abbreviated as “CNL”, is an independent media entity — we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.