Official data released on May 18 showed that Britain’s annual inflation rate hit a 40-year high last month due to rising energy costs, exacerbating a cost-of-living issue. The Office for National Statistics (ONS) reported that consumer price index inflation increased to 9% in April from 7% in March.
This was the highest level since 1982, according to the ONS, and the quickest observed pace since the data series began in 1989. As the Ukraine conflict pushes up oil and food prices, the Bank of England and other central banks are forced to raise interest rates, and nations throughout the world are seeing the highest inflation in decades.
An “apocalyptic” situation including rising Inflation
On Monday, Bank of England governor Andrew Bailey warned of an “apocalyptic” situation including rising food prices, which he blamed on Ukraine’s inability to sell its wheat and cooking oil.
Consumer prices in the United Kingdom rose sharply in April after a quota on household gas and electricity was raised in response to rising wholesale energy costs.
On Wednesday, ONS chief economist Grant Fitzner stated, “Inflation climbed sharply in April, driven by the strong rise in electricity and gas prices as the higher price cap came into force.” “Utility costs accounted for around three-quarters of the rise in the yearly rate this month. Today, we also released new modeled historical estimates that show CPI annual was at its highest point in 40 years.”