Topic: UK inflation hits new high of 9.1% as food and energy price surge persists - page 4. (Read 625 times)

What surprises you? Over the past 2+ years, the whole world has been experiencing several powerful crises - first Covid, then the first wave left hard scars on the economies of countries ... Small and small businesses - for the most part and everywhere did not survive the restrictive measures. Which led to unemployment, and the burden on social budgets, already overloaded with pandemics. Then a new wave of Covid. And in 2022, there will also be a new round of terrorist aggression against Ukraine, which launched a chain reaction of sanctions and consequences (unfortunately, sanctions often have a backlash). The result of the conflict was also the disruption of the hydrocarbon market. With gas, decisions are still being delayed, and with oil, an embargo and all side processes, as a result, an increase in logistics costs, which greatly affects everything that surrounds us ... The next couple of years will be very difficult ... Covid will still seem "easy problem"

It is not going to go away. We are in a period where gas prices keep on going high, food goes up just because of that basically. You build a farm out of the cities, someplace where nobody lives, and then you need to use tractors which uses gas to collect those, then you put them on trucks and send them to cities, which causes the food prices go be high.

However, as long as there are no cheap oil, gas whatever prices anywhere then we are going to keep living this high priced world and it will not stop. Right now, the whole world is aware of the situation, and they can't really do anything right now, hence we just need to accept the fact that the world will be like this until all thing settled.

I think the purpose of this article is to show what consequences such a policy of Great Britain and the rest of the NATO bloc in particular has. If you continue to adhere to this position, then everything will only get worse. Of course, now these 2 GBP don’t play any role, but in a year it will already turn into 10 GBP, and maybe more.

It is very interesting to see developed countries having an emergent country problem.
In Brazil 10% inflation is quite normal   

And our solution is to raise interest rates. But I mean, really raise. Our interest rate is now 13.25%!!!

Fed just raised it to 0.75%. That is quite ridiculous to nearly 10% inflation rate in USA.  They expect to get up to 3% this year.

Let's see how it goes by the end of the year. If the inflation is persistent we will see more aggressive raises, which could like lead to a recession...

Historical records from the Office for National Statistics show May's inflation was the highest since March 1982 — and worse is likely to come which means a fear for a dangling economy. The rise in consumer price index is becoming a big threat to the economic growth of food and energy production in Britain as high risk of meeting higher inflation rate and recession is staring fiercely at the UK Consumer price index.

I've lived in a country with high inflation rate, and I guess it made me pretty much insensitive to changes like this. I've been living in the UK since February, and if the prices got higher within this period of time, I didn't notice. They're very high, but that's because I compare them to a third-world country where I'm from. The 9% inflation, though, doesn't mean that the prices for goods went up by 9%. And you can see from this article that it's actually more like 4%, which, honestly, isn't easy to notice. If your average shop bill was 40 GBP, it would now be 42. Would you notice that?

It doesn't come as a shock that the UK's food and energy price has skyrocketed since it's last high recorded in April. With them still dealing with the strain the COVID-19 pandemic put on them, and the demand for consumer goods are high as against the supply, the government will have to look for means to curb this to avoid the inflation rate climbing to a shocking 10%.
 

U.K. inflation hit 9.1% year-on-year in May as soaring food and energy prices continue to deepen the country’s cost-of-living crisis. The 9.1% rise in the consumer price index, released Wednesday, was in line with expectations from economists in a Reuters poll and slightly higher than the 9% increase recorded in April.

https://www.cmcmarkets.com/sv-se/nyheter-och-analys/uk-cpi-set-to-increase-again-in-may

Consumer prices rose by 0.7% month-on-month in May, slightly above expectations for a 0.6% rise but well short of the 2.5% monthly increase in April, indicating that inflation is slowing somewhat. The largest upward contributions to the inflation rate came from housing and household services, primarily electricity, gas and other fuels, along with transport (mostly motor fuel and second-hand cars).

The Consumer Prices Index including owner occupiers’ housing costs (CPIH) came in at 7.9% in the 12 months to May, up from 7.8% in April. “Rising prices for food and non-alcoholic beverages, compared with falls a year ago, resulted in the largest upward contribution to the change in both the CPIH and CPI 12-month inflation rates between April and May 2022 (0.17 percentage points for CPIH),” the ONS said in its report.

https://www.gulftoday.ae/news/2022/06/22/uk-inflation-hits-40-year-record-highest-in-g7
The Bank of England last week implemented a fifth consecutive hike to interest rates, though stopped short of the aggressive hikes seen in the U.S. and Switzerland, as it looks to tame inflation without compounding the current economic slowdown.
More than four in five people in the U.K. are worried about rising living costs and their ability to afford basics necessities like food and energy over the coming months, according to a new survey.