Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Lebanese Ministry of Health: One person was killed in an Israeli airstrike on a car in the town of Burj Qalawieh, south Lebanon.
Al Mayadeen correspondent: The first ship of the Maghreb fleet delivering aid to break the siege on Gaza departs from the port of Gammarth in Tunisia.
Channel 12: Airspace closed at Ramon Airport due to fears of drone infiltration
IOF Spokesperson: Sirens sounded over an aircraft infiltration in the Bir Ora area, and details are being examined
Drone infiltration sirens sound north of the Gulf of Aqaba
Al Mayadeen's correspondent in Gaza: The Israeli occupation carried out five extremely violent raids on the western areas of Gaza City
Al Mayadeen's correspondent in Gaza: The Israeli occupation carried out major bombings in the Gaza Strip, the most violent since October 7
Yemeni Armed Forces spokesperson Brigadier General Yahya Saree: The missile force carried out a major operation using the Palestine 2 ballistic hypersonic missile, hitting several targets in occupied Yafa.
Sirens sound in large areas of occupied Palestine after a missile launch from Yemen was detected
Al Mayadeen's correspondent: 14 martyrs arrive at al-Shifa Hospital following Israeli massacre of al-Sultan Family north of Gaza.

UK: 9% inflation spike expected this week

  • By Al Mayadeen net
  • Source: Agencies
  • 15 May 2022 08:22
4 Min Read

If economist predictions are correct, the consumer price index will be at its highest level since 1990.

  • x
  • Inflation spike of 9% expected for UK this week

When official data are announced this week, inflation in the UK is expected to soar to 9%, and worries of a downturn are building.

The cost of living is rising quickly and economists predict that inflation will rise from 7.1% in March to 9.1% in April.

This may put the consumer price index at its highest level since 1990, when the UK was experiencing one of the worst postwar housing slumps and a full-fledged recession.

While food and energy bills soar in the country, incomes have taken a hit, and economists at ING stated that the month-on-month rise reflects a 54% jump in household gas and electricity bills since April. 

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

 

The Bank of England has anticipated a jump in inflation to beyond 10% after the summer, blaming rising energy costs. “We are less sure that it will get as bad as that, but then again inflation has consistently surprised to the upside,”  it said in a statement.

The labor market data will be released on Tuesday, a day before the inflation statistics. Central bank officials are especially concerned about recent salary increases of around 5.4%, as well as the extent to which workers would expect wage increases to keep up with growing inflation over the next year. This is the much-feared forerunner to a wage/price spiral, which might drive up inflation for years to come.

Some members of the Bank's monetary policy committee (MPC) anticipate wage demands will skyrocket – and firms will be obliged to raise prices to recuperate greater production costs – not just this year, but also next year, and potentially beyond 2024.

Two of the nine-member group suggested earlier this month that they considered the contrary — that wage growth had already peaked.

Related News

Poverty in Argentina exceeds 50% amid Milei's austerity measures

War on Gaza shatters Israeli economy, risks spread of poverty

Tony Wilson, director of the Institute for Employment Studies, believes that the labor market's tightness will keep wage growth high. The UK has record amounts of vacancies and an increasing proportion of employees changing employment, making it harder for firms to fill open positions.

Hundreds of thousands of businesses are functioning with razor-thin profit margins and are aware that their consumers are tightening their budgets, limiting their ability to pay greater wages. Rather than raising prices, these companies are likely to lower output or service levels.

According to Wilson, "A restaurant is more likely to stop opening at lunchtimes than take on a second chef on much higher wages."

Unemployment is expected to stay low at 3.8%, unchanged from the previous month, however, this figure is inflated by the 500,000 people, largely over-50s, who have left the labor force in the last 18 months.

Since 2019, the Brexit effect has denied firms access to 500,000 foreign workers who were scheduled to enter the UK labor market.

According to Wilson, the combined million-worker difference was significant when attempting to explain the situation of the UK labor market in comparison to other similar-sized countries like France. 

Read next: Reckless US sanctions on Russia trigger global inflation - The Global Times

 

Wilson suggested that the government concentrate its efforts on assisting people who had become economically inactive to return to employment. Instead, the sole policy action is at the Bank, where there is a discussion of raising interest rates to combat inflation at the MPC meetings in June and August.

However, Paul Dales, chief UK economist at consultancy Capital Economics, said his projection that the base rate could climb from 1% to 3% was now at risk of being unduly optimistic.

The threat of a recession is a major factor. After flatlining in February, the economy declined by 0.1 percent in March. 

Read more: UK recession risk increases as economy shrinks in March

  • Economic inflation
  • London
  • United Kingdom

Most Read

The damaged building in the Katara neighborhood, Doha, Qatar, September 9, 2025 (Social media)

Hamas delegation survives Israeli assassination attempt in Qatar

  • Politics
  • 9 Sep 2025
Israeli police and rescue teams respond at the scene of a shooting attack where several people killed and injured in Jerusalem, Monday, Sept. 8, 2025 (AP)

Al-Quds shooting: 7 settlers killed, several critically injured

  • Politics
  • 8 Sep 2025
Pro-"Israel" conservative Charlie Kirk shot during Utah speech

Pro-'Israel' far-right Charlie Kirk shot dead during Utah speech

  • US & Canada
  • 11 Sep 2025
Uprising against Volker Turk at the Human Rights Council over Gaza.

Uprising against Volker Turk at the Human Rights Council over Gaza

  • Politics
  • 12 Sep 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
People protest against Israeli Prime Minister Benjamin Netanyahu during the 79th session of the United Nations General Assembly, in New York, on Friday, September 27, 2024 (AP)
Politics

'Israel' stops unfunded diplomacy ahead of UN, October 7 memorial

An Israeli Air Force fighter jet releases flares over the Gaza Strip, is seen from southern occupied Palestine, Thursday, May 8, 2025 (AP)
Politics

OIC summit draft: Israeli attack on Qatar risks normalization

People shout slogans and hold Palestinian flags while protesting during the twenty-first stage of La Vuelta cycling race from Alalpardo to Madrid, Spain, Sunday, Sept. 14, 2025. (AP)
Sports

Pro-Palestine protests force abrupt end to Vuelta a España finale

Damage is seen after an Israeli strike targeted a compound that hosted Hamas' political leadership in Doha, Qatar, on Wednesday, September 10, 2025 (AP)
Politics

Israeli regime faces growing isolation over Qatar strike: Reports

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS