The rate of inflation in the U.K. jumped to a 40-year high in September as soaring food and energy prices deepened the country's cost-of- living crisis.
In September, inflation in the U.K. reached a 40-year high.
The rate of inflation in the UK rose to 10.1% in the year to September.
Consumer prices went up from 9.9% in August to a 40-year high in July, according to the ONS.
The biggest annual jump since 1980 was caused by soaring prices for food.
The increase was caused by increasing bills for transportation and energy.
Continuing drops in the price of petrol partially offset increases elsewhere, as well as falling prices for second-hand cars and air travel, according to the ONS.
Inflation is hitting economies around the globe. In the 12 months ending in September, consumer prices in the US rose 8.2%. Inflation in the eurozone hit 10% in September, a new record, but rates in some countries are higher. The increasing costs of living have driven political agenda around the world, and driven many to the streets in protest to demand more government action to decrease prices.
The cost of goods and services increases over time. Today's dollar will be worth less in the future than it is now, because it decreases the value of money over time. High and unstable rates can be dangerous and even cause economic collapse if they spiral out of control. The rate of inflation in the U.K. is close to the 40-year high it reached in 1982. The rate is above the Bank of England's 2% target for inflation and will peak in October. Inflation is expected to stay above 10% for a few months before coming down.
The rate will make it harder for people in the U.K. to make ends meet. Food and energy prices around the world have gone up as a result of disruptions from Covid-19 and Russia's invasion of Ukraine, and the central bank has had to intervene as the value of the pound has gone down.
The fate of a person According to polls, Britain's new prime minister is deeply unpopular among members of her own party. Truss installed a new finance chief, Jeremy Hunt, to reverse course after a series of humiliating U-turns on unpopular and unfunded fiscal policies. Many lawmakers think it is a matter of when, not if, she will leave her job. She has been known to change her mind on several occasions.
The bank of england September's rate of inflation will make it more likely that interest rates will be hiked in November. The bank is under pressure to respond to government changes to fiscal policy, which has spooked markets and sent the pound tumbling.
Inflation in the UK is back to a 40-year high.
All Rights Reserved © 2024
