May 30, 2023

East Valley Times

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UK annual inflation reaches 4.2% – the highest level in a decade and more than double the Bank of England’s expectation

A customer looking for suitable prices at a London supermarket (REUTERS / Henry Nicholls / Archive)

British inflation hit a 10-year high in October And increased demand after corona virus lockdowns, data showed Wednesday, sparking talk of a Interest rate hike before Christmas.

The annual rate has risen to 4.2 percent, தி Maximum since November 2011The National Statistics Office said.

It was up 3.1 percent in September Twice as much as the Bank of England’s 2.0 per cent target.

In reaction, The pound rose against the euro and the dollar as traders from the Bank of England rated interest rates higher in December.

The Bank of England (BoE) has expressed its concern over the issue on several occasions, but at its last meeting in November decided not to change its interest rate policy. Are at an all-time low of 0.1%, To boost the economy.

Bank of England Governor Andrew Bailey (Justin Dollis / REUTERS / File)
Bank of England Governor Andrew Bailey (Justin Dollis / REUTERS / File)

According to economists, inflation is rising faster than expected The financial institution can be persuaded to intervene from next month.

Considering the labor market figures released the day before and the close follow-up of the BoE, it showed a new one. Unemployment fall, 4.3%.

“After the positive news” in the employment sector, He estimates that this new rise in inflation will “cause interest rates to rise further in December”. Paul Tales, D Capital Economics.

Hard winter

The monetary institution is facing the same dilemma as other central banks: Controls rapid inflation without stifling stagnant growth.

“I’m very embarrassed by the inflation situation”Said Monday Andrew Bailey, The governor of the BoE, estimates that its forecast for inflation will be 4.5% in November, stabilizing at that level in early 2022 and 5% in April.

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Before the frying winter comes, Inflation threatens anti-poverty associations during the most difficult months for poor families.

“We know people are facing pressures related to the cost of livingThe British Economy Minister responded in a statement on Wednesday. Rishi Sunak, That is a statement.

British Finance Minister Rishi Sunak (REUTERS / Yves Herman)
British Finance Minister Rishi Sunak (REUTERS / Yves Herman)

The government expects support measures of “over 4. 4.2 billion” (approximately $ 5.64 billion), of which 500 500 million (approximately $ 670 million) Very simple families are helped to pay their electricity bills Or their food in the winter, Sunak recalled.

The energy price ceiling set by UK authorities was raised on October 1.

Inflation in the United Kingdom is lower than in the United States, Year-on-year prices rose 6.2% year-on-year in Germany, something that had not happened for thirty years (+ 4.5% in October).

(With information from AFP)

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