Title: UK inflation hits 40-year record, highest in G7
Jun 22, 2022 03:20AM ET
The sharp rise in food prices has driven UK consumer price affectation to a 40-time high of 9.1 last month, the loftiest among the Group of Seven countries and italicizing the inflexibility of the cost of living.
The rate, which rose from 9.0 in April, matched the agreement reached in a Reuters poll of economists.
literal data from the Office for National Statistics show that May affectation was the loftiest since March 1982- and more severe events are likely ahead.
Sterling, one of the worst-performing currencies against the U.S. dollar,
It fell below $1.22 this time, down 0.6 percent on the day.
Some investors believe that the U.K. is at risk of both sustained high affectation and a recession, reflecting its large energy import bills and ongoing Brexit problems that could further damage trade ties with the European Union.
On Wednesday, the Resolution Foundation said the megahit to ménage living costs had been aggravated by Brexit, which has made Britain more unrestricted in frugality, with dangerous long-term counteraccusations for productivity and stipend.
Last week, the Bank of England said affectation was likely to stay over 9 in the coming months before peaking at just over 11 in October, when homes' regulated energy bills are due to rise again.
Food and non-alcoholic beverage prices increased 8.7 percent on time in May, the largest increase since March 2009, making this category the largest contributor to periodic affectation last month.
According to the ONS, overall consumer prices rose 0.7 month-on-month in May, slightly further than the agreed 0.6.
The ONS reported that UK plant gate prices—a key factor in determining the prices consumers ultimately pay in stores—were 22.1 percent higher in May compared to the previous year, the largest increase since this data began in 1985.