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UK: inflation reaches its highest since 1982

  • By Al Mayadeen English
  • Source: Agencies
  • 20 Jul 2022 13:15
2 Min Read

Within the span of one year, the consumer price index has reached a high of 9,4%, hitting a new peak since 1982.

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  • UK: inflation reaches its highest since 1982
    UK: inflation reaches its highest since 1982

The cost of living, including the cost of food and motor fuel, is rising at unprecedented levels as inflation further rises. 

During the month of June, inflation in the UK rose to 9.4% over the span of twelve months. That rate was recorded at 9,1% last May.

With inflation at a 40-year high, wages are being stretched as price rises erode the value of the pound in their pocket. The UK has especially witnessed a series of walkouts in the last months of rail workers due to poor job security and low wages. 

For the time being, this is the highest inflation rate of all G7 member countries, as Japan and Canada have yet to publish their June figures.

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The Bank of England has raised its interest rate five times since December in an attempt to stem rising prices. It's expected to raise it again by as much as 50 basis points, or half a percentage point, at its next monetary policy meeting in August.

The Office for National Statistics (ONS) reported a 42% year-on-year rise in petrol prices and an almost 10% increase in food prices, the main drivers of inflation last month.

UK Finance Minister Nadhim Zahawi said that other countries were facing runaway inflations and the government was joining forces with the Bank of England to tackle the problem.

"Countries around the world are battling higher prices and I know how difficult that is for people right here in the UK, so we are working alongside the Bank of England to bear down on inflation," Zahawi said in a statement.

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  • inflation

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