London-British inflation rises to the highest 40 years in July because the price of the spiral food and energy continues to intensify the country’s historic extortion in the household.
The consumer price index increased by 10.1% per year, according to estimates issued by the National Statistics Office on Wednesday, above the Reuters consensus estimate of 9.8% and increased from 9.4% in June.
Core inflation, which does not include energy, food, alcohol and tobacco, came at 6.2% in the year to July 2022, up from 5.8% in June and in front of the projection of 5.9%.
British 2 -year -old gold yield jumped after a red heat inflation mold, adding more than 17 basis points reaching 2.327%, their highest points since the end of June.
The increase in food prices contributes to the biggest up to the annual inflation rate between June and July, said ONS in his report.
“Supermarket has no choice but to continue the price increase of suppliers, they themselves compete with inflation that has never happened before in raw materials and material input costs,” said Kien Tan, Director of Retail Strategy at PWC.
“This is very acute in the intensive category of labor and utilities such as milk, with a report on the price of one liter of milk which has more than doubled in several stores since the beginning of the year.”
ONS repeats that the estimated consumer price is indicative “shows that the CPI level will last higher around 1982, where estimates range from almost 11% in January to around 6.5% in December.”
Bank of England has implemented six consecutive increases for interest rates because it seems to be controlling inflation, and earlier this month launched its largest single increase since 1995 when projecting that Britain will enter the longest recession since the global financial crisis in the fourth quarter of this year.
The bank expects inflation to reach 13.3% in October. The leadership candidate for Conservative Party Liz Truss and Rishi Saunak, one of whom will replace Boris Johnson as Prime Minister on September 5 after the party member poll, is under increased pressure to offer radical solutions to the country’s historic cost crisis.
The latest estimate shows the British energy price limit can rise to £ 4,266 ($ 5,170) per year early next year from £ 1,971 at this time, with many households have chosen between warming and eating. This hat is expected to rise to more than £ 3,000 in October after the next review.
Real wages in the UK dropped 3% annual in the second quarter of 2022, according to ONS data issued Tuesday, the sharpest decline in the record.
Although the average salary does not include bonuses increased by 4.7%, living costs far exceed the growth of wages and squeeze household income.
“Today’s inflation rate functions as a further reminder for many households in the UK that they face a period of large financial difficulties,” said and Howe, head of investment confidence in Janus Henderson.
Consumers have wrestled with an increase in energy costs and soaring household prices, all are exacerbated by the lack of decisive actions at the political level. In the midst of talks about the strike and planting energy, there is no doubt that the difficult decision is in front of the British family. “
Richard Carter, Head of Flower Research Permanent at Quilter Cheviot, estimates that the Bank of England is likely to respond to the next monetary policy meeting with an increase in another 50 basis points in an effort to fight inflation, and say there is no doubt that the crisis of living costs will be more Bad before it becomes better.
“Therefore, there will be no much pressure on the next prime minister to help soften the punch and the Bank of England will continue to have a very difficult job in his hand,” he added.