Inflation in the UK rose year-on-year to 9% in April, a 40-year high, mainly due to energy prices, which are expected to escalate the cost of living crisis.
Whereas, at the end of March, the inflation rate was 7%, the Office for National Statistics declared that the April rate is the highest since the inflation data came into existence, i.e. 1989. According to estimates, this rate nevertheless “should have been higher. The last time was around 1982”.
“Inflation rose sharply in April due to a sharp rise in electricity and gas prices”, commented ONS chief economist Grant Fitzner. “The sharp year-over-year increase in the cost of metals, chemicals and crude also continued, as was driven by higher prices for products leaving the factory,” he says.
an “apocalyptic” situation
Rishi Sunak, the Chancellor of the Exchequer, argued in a statement that “countries around the world are facing rising inflation” and that April inflation in Britain comes from energy, fueled by prices in world markets. “We cannot completely protect people from these global challenges, but we are providing vital assistance where we can and we stand ready to do more,” he said.
Critics are growing against the government’s action that is deemed inadequate given the cost of living crisis. Many organizations blame government inaction as millions of Britons now have their food or heating restricted.
On Monday, Bank of England Governor Andrew Bailey described the situation as an “apocalyptic” for food prices and warned that inflation, which is expected to reach the top 10% by the end of the year in the United Kingdom, could hit Ukraine. If it fails, it can grow even more. Export your crops.
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