Inflation in the U.K. hit a new 40-year high with the consumer price index rising 9.4% annually. The U.K.’s Office for National Statistics stated that its indicative modeled consumer price inflation estimates “suggest that the CPI rate would last have been higher around 1982, where estimates range from nearly 11% in January down to approximately 6.5% in December,” CNBC reported.
Next Move: Bank of England Governor Andrew Bailey indicated in his speech on Tuesday that the central bank may consider a 50 basis points rate hike in its August monetary policy. If this happens, it could be the single biggest rate hike in the U.K. in nearly 30 years.
'No Ifs Or Buts:' The BoE Governor has asserted there would be no ifs or buts when it comes to taking the inflation back to its 2% target. The Bank of England expects inflation to hit 11% this year.
Rising Cost Of Living: Unions have been asking for a pay hike with rising costs of living, which means many people are struggling to pay their bills and are turning to food banks, reports the BBC. Fuel prices have also surged following the Russia-Ukraine war.
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