In July, consumer price inflation in the U.K. soared past 10%, the highest it has been in 40 years, according to the statistics office.
The U.K.'s inflation hit a four decade high in July.
The U.K.'s consumer prices index rose 10.1% in the year to July 2022, the highest it has been since the current statistical model went into effect in 1997.
The last time the country's consumer price index was higher was in 1982.
According to the report, rising costs of energy and fuel are the main cause of the annual inflation rate.
The food and non-alcoholic beverage segment had an annual inflation rate of 12.7% in July, which was higher than the previous month.
The final inflation numbers for July are higher than expected.
The U.K.'s inflation data for July appears to be somewhat of an outlier. In July, inflation in the U.S., Canada, Germany, and Italy slowed down. France's inflation rate rose to 6.1% in July, up from 5.8% in June. Japan is the only G7 nation that hasn't released its inflation numbers.
Despite hitting a multi-decade high, the U.K.'s inflation rate is expected to rise further with the Bank of England predicting it will breaching 13% later this year When the cap on prices is raised in October, household energy bills are expected to go up a lot.
A total of $4,266 was spent. After the current cap on prices is revised, an average household will have to pay an annual price for electricity and gas. The average household in the U.K. pays 2% of their income to government.
Families that already worry about making ends meet will be even more concerned. The Labour plan to freeze the energy price cap will bring inflation down this winter.
The Bank of England hiked its interest rate by 50 basis points earlier this month in order to control inflation. The British central bank expects inflation to be very high throughout the rest of this year and the next. The U.K. will fall into a recession in the last quarter of the year, according to the BoE. Despite the impending recession, the bank insisted that it committed to bringing inflation down to its targeted rate of 2% and will announce another 50 basis point hike in September. The annual inflation rate in the Eurozone stood at 8.9% at the end of July, a new record. Europe still faces the effects of high energy prices despite a drop in gasoline prices in the U.S.
Inflation tops 10% in the U.K.
The UK's inflation is the highest in 33 years.
The U.K. central bank expects a recession this year.
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