The rise in fuel and food prices in Britain is leading to a rise in inflation to its highest rate in 40 years.
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Britain’s inflation rate is 9.4%, the highest in 40 years
Commodity prices in Britain rose last June by 9.4%, the highest rate since early 1982, according to official figures that confirmed that the odds of an interest rate hike by the Bank of England would increase by half a percentage point next month.
An economist said, “The inflation rate reached 9.4% last June, compared to 9.1% last May, an increase of 0.3%.
Thus, Britain, one of the seven largest economies in the world, records the highest inflation rate so far compared to other countries that experienced price inflation, such as Canada and Japan, but none of these countries has reached the level reached by the United Kingdom at the level of high commodity prices. .
It is noteworthy that the Central Bank of Britain raised borrowing rates 5 more times than it was in last December, in an attempt by the British authorities to curb the rise in inflation rates in the country, and for the recovery of the British economy in the future. The Central Bank is also expected to raise borrowing rates further, during the month of August.
Also, the Office for National Statistics indicated an additional increase in fuel prices by 42%, and an increase in food prices by 10%, which are the main drivers of inflation in the United Kingdom, during the past month.
The Office for National Statistics added that the basic inflation in the month of June was 5.8%, compared to 5.9% in the month of May.
It is noteworthy that the costs paid by the British government for goods and energy increased by 24 percent in the month of June compared to the previous year, the largest increase since 1985.