Business

UK inflation hits new 40-year high of 10.1%


Liz Truss and Rushi Sunak during The Sun’s Showdown: The Fight for No10, the latest head-to-head debate for Conservative leadership candidates, at TalkTV’s Ealing Studios, west London. Date taken: Tuesday, July 26, 2022.

Dominic Lipinski | Picture Pa | beautiful pictures

LONDON – Inflation in the UK rose to a 40-year high in July as food and energy prices continued to spiral in a spiral that increased the country’s historic pressure on households.

The consumer price index rose 10.1% year-on-year, according to estimates released by the Office for National Statistics on Wednesday, well above the Reuters consensus forecast of 9.8% and up from 9.4. % in June.

The figure represents a 0.9% month-on-month gain, up from a 0.8% tilt in June and ahead of the 0.6% forecast, but remains wary of a 2.5% month-on-month increase. before April.

The ONS said in its report, rising food prices made the biggest contributor to the annual inflation rate for the June-July period.

The ONS repeated that estimates of consumer price inflation modeled on their indicator “suggest that CPI rates will be higher around 1982, where estimates range from nearly 11% in January to about 6.5% in December.”

The Bank of England made six consecutive hikes in interest rates as it looked to curb inflation and earlier this month posted biggest single gain since 1995 while predicting that the UK will enter its longest recession since the global financial crisis in the fourth quarter of the year.

The bank expects inflation to hit 13.3% in October. Conservative leadership candidates Liz Truss and Rishi Sunak, one of whom will succeed Boris Johnson as prime minister on September 5. A poll of party members, is under increasing pressure to come up with radical solutions to the country’s historic cost of living crisis.

The latest projections suggest the UK energy price cap could rise to £4,266 ($5,170) annually early next year from £1,971 currently, with many households already choosing between heating and eating.

Real wages in the UK fall by 3% annually in the second quarter of 2022, according to ONS data released on Tuesday, the steepest decline on record.

Although median wages excluding bonuses increased by 4.7%, the cost of living is outpacing wage growth and squeezing household incomes.



Source link

news7f

News7F: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button