United Kingdom Inflation drops by 10% and plunges the cost of living
The British are particularly exposed to inflation.
Inflation in the United Kingdom jumped in July to 10.1% year-on-year, passing the symbolic bar of a double-digit price increase that promises to cash in a little more on the cost of living crisis. The diet especially increased in July. "Bakery, dairy products, meat and vegetables", but also "takeaways", lists Grant Fitzner, chief economist of the Office for National Statistics (S), on Twitter.
Inflation, which already reached 9.4% year-on-year in June, remains at its highest level in 40 years. It is accelerating faster than economists' forecasts and could exceed 13% in October, the Bank of England predicts, when drastic increases in energy prices, which are also soaring, must come into force for individuals.
United Kingdom Inflation
Therefore, the purchasing power of the British is melting at a record speed, with real wages, that is, adjusted after price increases, which lost 3% for the three months ended at the end of June, according to figures published by the ONS on Tuesday. The economy is already taking a hit. Britain's gross domestic product (GDP) contracted by 0.1% in the second quarter, before a likely recession at the end of the year.
"I understand that times are hard and that people are worried about the price increases that countries around the world are facing," Finance Minister Nadhim Zahawi reacted, highlighting the 37 billion pounds (43.9 billion euros) support package already announced by the government. But from the opposition to NGOs to companies, many voices are calling for modest households to do well in the face of historic price increases.
And if purchasing power is at the heart of the Conservatives' campaign to choose the successor of the resigned Prime Minister Boris Johnson, critics are inflamed by the inaction of the executive before the two finalists Liz Truss and Rishi Sunak left at the beginning of September.
United Kingdom Inflation statements
"The cost of living crisis is now very real for households and businesses, so a concrete solution is needed to support the most vulnerable in the face of higher energy bills," the employers' union CBI demands in a statement.
The ONS data "indicates that inflation has risen more sharply in the UK than in other G7 countries" and "many consumers are already forced to make difficult choices" to balance their budgets, according to Susannah Streeter, from Hargreaves Lansdown.
United Kingdom Inflation comparison
For comparison, the rise in consumer prices in France accelerated in July to reach 6.1% year-on-year, while inflation slowed in the United States to 8.5%, according to figures published last week. Across the Channel, inflation was widespread last month, the ONS notes.
The cost of raw materials and goods leaving factories has also continued to rise. The Bank of England, which has already raised interest rates several times since 2021 in an attempt to calm inflation, announced at the beginning of August a rise in its key interest rate by half a percentage point, the largest increase since 1995.
"The extent and magnitude of inflation is putting additional pressure on the Bank of England" to continue hikes beyond its current rate of 1.75%, says KPMG economist Yael Selfin.
United Kingdom Inflation Comments
- At home we are less affected given the amount of holidaymakers who wriggle out of the derche to generate VAT... holidaymakers who will be crying in September talking about purchasing power because they have just spent 3 weeks sipping mojitos on the terraces of cafes.
the cicada having been keké all summer will be very deprived when the start of the new school year has come... she's going to scream starvation at her girlfriend's C A F ;)
- as for France, citizens would pay dearly for the sanctions against Russia, which are only impacting us when this war is not ours.
Johnson, Macron preferred to take care of the Zelensky theater and give in to his endless quetes, than to support their own citizens.
France's real inflation is probably much higher than we think and some producers abuse increases unrelated to the war.....until we give them up. It is no longer possible to feed properly! unaffordable fruits, legumes, meat, fish .
Are the Nuptials on a big holiday??????
