In Great Britain, inflation jumped to 10.1% in July, the highest level since February 1982. The growth of consumer prices in annual terms accelerated compared to June (9.4%).
This is reported by Reuters with reference to official data.
At the same time, inflation growth exceeded all forecasts of economists polled by Reuters, who expected inflation to rise to 9.8% in July.
Earlier, the Bank of England raised its key interest rate by 0.5% to 1.75%, the first half-percentage point hike since 1995. The Central Bank predicts that inflation will peak at 13.3% in October, when regulated household energy prices will rise again.
The Finance Minister, Nadhim Zahavi, stated that controlling inflation is the top priority of his work.
According to the Bank of England, the rise in energy prices in Europe following Russiaʼs invasion of Ukraine is the main driver of inflation and is likely to push the UK into a prolonged, albeit shallow, recession later this year.
- The German economy will lose more than €260 billion in added value by 2030 due to the Russian invasion and high energy prices. This is stated in a study by the Employment Research Institute (IAB), writes Reuters.