ONS figures show real wages in the UK in the three months to May fell by the most since records began in 2001.
Henry Nicholls | Reuters
LONDON – Inflation in the UK slowed in August as fuel prices fell, although food prices continued to rise as the country’s cost of living crisis continued.
The consumer price index rose 9.9% year-on-year, according to estimates released by the Office for National Statistics on Wednesday, partly below economists’ consensus forecast of 10.2% released by Reuters. probe. It also fell from July’s 10.1 percent.
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Month-on-month, consumer prices rose 0.5%, partially lower than forecast. Core inflation, excluding volatile energy, food, alcohol and tobacco, was 0.8% month-on-month and 6.3% year-on-year, in line with expectations.
“The drop in motor fuel prices was responsible for the largest change to the change in both CPIH and CPI annual inflation rates from July to August 2022,” the ONS said in its report. .
“The increase in food prices is the largest contributor, partially offsetting, rising to exchange rate changes.”
The UK has suffered a historic cost-of-living crisis this year as food and energy prices skyrocket and wage growth fails to keep pace with inflation, which has resulted in one of the lowest wages in the world. actually the sharpest decline recorded.
Last week, new British Prime Minister Liz Truss announced an emergency financial package capped annual household energy bills at £2,500 ($2,881.90) for the next two years, with a comparable guarantee for businesses for the next six months and extra support in the process deployed to vulnerable sectors.
Analysts expect these measures – estimated to cost around £130bn – will sharply reduce the inflation outlook in the short term, but will increase in the medium term.
The Bank of England will announce its latest monetary policy decision next Thursday after a delay due to Queen Elizabeth II’s deathand many are expected to choose a strong 75 basis point hike in interest rates as it looks set to drag down inflation.
