Highest inflation in the UK in 41 years
In this situation, the Highest inflation in the UK, the rate of increase in the wages of people in the UK is lower than the rate of inflation. If the rate of wage growth is less than inflation, people will suffer more.
How much inflation is in any sector?
Housing/Fuel – 26.6%
Food/beverage – 16.2%
Furniture and household items – 10.5%
Hotels and Restaurants – 9.6%
Travel – 8.9
There is no end to the suffering of the people of the United Kingdom. The country’s inflation rate is rising to record highs almost every month. Last September, the country’s inflation rate was the highest in 40 years. Now it is known that the inflation rate in the country was the highest in 41 years in October.
Everything from food to fuel is now expensive. Prices of milk, cheese and eggs are still rising. Fuel and electricity prices have increased. BBC news.
Overall inflation was the highest since October 11.1, 1981. Among them, food inflation stood at 16.2 percent, which was 14.5 percent in September. Grant Fitzner, chief economist at the country’s Office for National Statistics (ONS), told the BBC that gas prices in the UK have risen by around 130 per cent and electricity prices by around 66 per cent in the past year.
The UK government launched the Energy Price Guarantee Scheme from October to curb the rush of energy prices. Through this, almost all citizens of the country will get a fuel subsidy of 400 pounds. But even that does not end the plight of people. The inflation rate is touching record every month mainly due to increase in gas and electricity prices. The ONS calculates that if the government had not given these subsidies, the inflation rate would have been 13.8 percent.
In this situation, UK Finance Minister Jeremy Hunt is expected to make a major announcement on the economy tomorrow. According to media reports, tomorrow’s announcement will propose a reduction in government spending and an increase in tax rates.
Jeremy Hunt says his aim is to catch the rush of rising commodity prices. At the same time, he will not shy away from taking the necessary drastic measures to bring the economy back on track.
In this situation, the rate of increase in the wages of people in the UK is lower than the rate of inflation. Wages in the UK rose by 5.7 percent in September this year. And the rate of inflation in that month was 10.1. It increased to 11.1 percent in October. The wage growth rate for that month is not known. But if the rate of wage growth is less than inflation, people will suffer more.
How much inflation in any sector?
According to ONS data, the highest inflation in October was in the housing, energy and water sector – 26.6 percent. Inflation was 16.2 percent in food and non-alcoholic beverages, 10.5 percent in furniture and household goods, 9.6 percent in hotels and restaurants, 8.9 percent in communications, and 8.5 percent in clothing and footwear.
According to The Guardian report, a survey by Tesco, the largest supermarket in Britain, showed that shoppers are now looking for end-of-life products, because these products are available at higher discounts. Tesco says 33 percent of its customers now frequently seek out such discounts.
Meat, ready-to-eat, vegetable and dessert foods have been set aside to free up supermarket shelves. Tesco says this trend has reduced food waste.
According to The Guardian report, the reduction in wholesale fuel prices will give consumers some relief, but fuel prices are still significantly higher than pre-war levels. For that reason, the Bank of England expects the UK inflation rate to be above 10 percent in the next few months. Then the inflation rate will start to decrease.
This means the Bank of England will raise policy rates significantly again next month. Despite fears of a recession, they feel it is their duty to keep inflation at 2 percent.
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