July 21, 2022
1 min read

UK inflation hits fresh 40-year high

Inflation has soared to the highest level in decades in many countries, fuelled by the war in Ukraine and the easing of Covid restrictions…reports Asian Lite News

Annual inflation surged to a fresh 40-year high in June on rising motor fuel and food prices, official data showed Wednesday, adding to a cost-of-living crisis.

The Consumer Prices Index (CPI) jumped to 9.4 percent last month from 9.1 percent in May, the Office for National Statistics said in a statement.

Analysts said the data put pressure on the Bank of England to raise interest rates by as much as 50 basis points, or half a percentage point, at its next policy meeting in August.

“In the UK, we saw another eye-popping CPI reading and the pressure is on the BoE to do what it takes before it is too late to control inflation,” said Naeem Aslam, chief market analyst at Avatrade.

Inflation has soared to the highest level in decades in many countries, fuelled by the war in Ukraine and the easing of Covid restrictions.

That has forced central banks to raise interest rates, risking the prospect of recession as higher borrowing costs hurt businesses and consumers.

The Bank of England has raised its key interest rate five times since December, with hikes of a maximum of a quarter of a percentage point so far.

However, on Tuesday BoE governor Andrew Bailey had said that “a 50-basis-point increase will be among the choices on the table when we next meet”.

Separate data this week have shown that soaring UK inflation has caused the value of British wages to fall at a record pace.

ALSO READ-Ghana’s June inflation rate rises to nearly 30%

Previous Story

Biden seeks to revive climate agenda

Next Story

Nord Stream 1 resumes gas deliveries to Germany

Latest from UK News

Hot weather boosted retail sales in June

The monthly retail sales numbers have been up and down lately, reflecting weather patterns and a late Easter Retail sales rose in June as the hot weather boosted fuel and supermarket sales,

Corbyn confirms launch of new political party

In a statement announcing plans to form a new party, Corbyn and Sultana vowed to fight injustices such as child poverty, giant corporations making “a fortune from rising bills” and the government

UK Govt Outlines New Approach at G20

UK is resetting its relationship with countries in the Global South and helping countries exit the need for aid The UK is resetting its relationship with countries in the Global South and
Go toTop

Don't Miss

UK to drop quarantine for fully jabbed EU, US travellers

A discussion on the isolation exemption is likely to be

‘Collectively raise the cost’: UK envoy on Russian aggression

“We have to collectively raise the cost Russia has to