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UK inflation reaches 40-year peak

  • By Al Mayadeen net
  • Source: Agencies
  • 18 May 2022 11:17
2 Min Read

Official statistics indicated Wednesday that Britain's annual inflation rate hit a 40-year high last month due to skyrocketing energy costs, exacerbating a cost-of-living problem.

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  • UK inflation reaches 40-year peak

Official statistics indicated Wednesday that Britain's annual inflation rate hit a 40-year high last month due to skyrocketing energy costs, exacerbating a cost-of-living problem.

According to the Office for National Statistics, consumer price index inflation reached 9.0 percent in April, up from 7.0 percent in March.

According to the ONS, this was the highest level since 1982, and the quickest observed pace since the data series began in 1989.

Read more: EU states running after policies to reduce energy inflation

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Countries throughout the world are experiencing decades-high inflation as the Ukraine crisis raises oil and food costs, driving the Bank of England and other central banks to raise interest rates.

On Monday, Bank of England governor Andrew Bailey warned of an "apocalyptic" situation caused by skyrocketing food prices, which he claimed were exacerbated by Ukraine's inability to sell its commodities.

Consumer prices in the United Kingdom rose in April as a ceiling on household gas and electricity was raised owing to rising wholesale energy costs.

ONS chief economist Grant Fitzner stated Wednesday that "Inflation rose steeply in April, driven by the sharp climb in electricity and gas prices as the higher price cap came into effect," adding that "Around three-quarters of the increase in the annual rate this month came from utility bills.

"We have also published new modelled historical estimates today which show that CPI annual inflation was last higher 40 years ago."

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