You are here: Home » International » News » Economy
Business Standard

UK inflation rate hits new 40-year high of 9.1% in May, likely to rise more

The Bank of England says inflation could hit 11% in October when a cap on domestic energy bills is lifted

Topics
UK inflation rate | Bank of England | consumer price inflation

AP | PTI  |  London 

Photo: Bloomberg
The pressure is driving workers to seek substantial pay increases, a move the Conservative government argues could spark a wage-price spiral, driving inflation even higher. Photo: Bloomberg

Britain's inflation rate hit 9.1% in May, a new 40-year high and up slightly on the previous month,

The Office for National Statistics said Wednesday that rose slightly from 9% in April, itself the highest level since 1982.

Chief economist Grant Fitzner said continued steep food price rises and record high petrol (gasoline) prices were offset by clothing costs rising by less than this time last year, and a drop in often fluctuating computer games prices.
 

chart

The increase was in line with analysts' expectations and signals no quick end to the cost-of-living squeeze facing millions in Britain. The says inflation could hit 11% in October when a cap on domestic energy bills is lifted.

Millions of people in Britain, like those across Europe, are seeing their cost of living soar, in part driven by Russia's war in Ukraine that is squeezing supplies of energy and food staples such as wheat

The pressure is driving workers to seek substantial pay increases, a move the Conservative government argues could spark a wage-price spiral, driving inflation even higher.

Tens of thousands of railway workers are walking off the job for three days this week in the country's biggest transit strike for three decades, and a potential precursor to a summer of labor discontent.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, June 22 2022. 18:26 IST
RECOMMENDED FOR YOU
.