United Kingdom Inflation Rises Very Rapidly, Still 30 Year High.
ViVA POST – The U.K inflation hit 5.5% y/y in January, slightly above forecasts and remaining at a 30-year high.
On a monthly basis, consumer prices contracted by 0.1%, slightly lower than economists expected in a Reuters poll.
December’s 5.4% annual increase in consumer prices was the highest since 1992, and the Bank of England has imposed successive rate hikes for the first time since 2004 in a bid to contain runaway inflation.
The biggest contributors are energy, fuel and food, such as used cars. UK households are feeling the pressure from the cost of living crisis as energy prices soar. The spike has prompted the country’s energy regulator to raise its energy price cap by 54% from April, as supply-side issues continue to put upward pressure on costs.
Tensions between Russia and Ukraine have also contributed to accelerating the increase in the prices of goods and services, or what is usually called inflation. Some of the difficulties of the community in reaching their daily needs have been directly proportional to the declining income.
On the European continent, natural gas prices have shot up more than 50%, the highest increase in decades, this will also jeopardize the economic growth of consumers and manufacturers.