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British Inflation Hits 10.1% As Cost Of Living Continues To Soar

In News, World
August 17, 2022

In Britain the price of living increased in July, putting more stress on families with a tight budget across the UK.
Consumer Prices Index inflation (CPI) increased to 10.1 percent in the month of March which was higher than expected as reported by the Office for National Statistics (ONS) disclosed.

British Inflation Hits 10.1% As Cost Of Living Continues To Soar-TeluguStop.com
The rise was largely due to food prices and staples like toothbrushes and toilet roll the ONS said.

The estimate was to rise to 9.8 percent in accordance with an average of estimates of analysts determined by Pantheon Macroeconomics, reports dpa news agency.

It’s the largest increase in the price of living in the United States since February 1982 in which the CPI was 10.4 percent as per ONS estimates.

It’s also a massive leap over the 9.4 per cent inflation rate in June.

ONS chief economist Grant Fitzner said: “A broad range of price increases drove inflation to a new high this month.Food prices increased significantly especially bakery products such as dairy, meat and vegetables.

This was also evident in more expensive takeaway prices.

“Price increases in other essential items like toilet rolls, pet food and toothbrushes, as well as deodorants and toothbrushes also increased the cost of living in July.

“Driven by increased demand, prices for packages soared, after declining in the previous year.Air rates also increased.

“The cost of both raw materials as well as goods that leave factories continue to increase due to the cost of food and metals respectively.”

Inflation is expected to drop back a bit in August, however according to estimates, it could reach 13.3 percent in October, when the cap on energy prices increases again.

The Bank of England thinks this could force the UK into recession.

Based on the latest estimates from experts, the price cap is expected to rise to around 3,640 pounds in October, an increase from 1,971 pounds as of now.

Then, the prices for energy are expected to increase more, reaching well over 5 000 pounds next year however, the projections for the future are less certain.

The Chancellor Nadhim Zahawi stated: “I understand that times are difficult, and people are concerned about the rise in prices that nations around the globe are experiencing.

“Although there aren’t any easy solutions, we’re trying to help in any way we can.” PS37 billion assistance package with additional payments for those with the most low income, pensioners, and disabled people, as well as PS400 off the cost of energy for everyone in the next few months.

“Getting the rate of inflation down is my number one goal and we’re taking action with a solid, independent monetary policy responsible spending and tax decisions and reforms to increase efficiency and productivity.”

In addition, the official data indicated that Retail Price Index (RPI) inflation was 12.3 percent in July.

In the past, this method was used to limit the price increase in the following year on tickets for trains in England, Scotland and Wales.

With inflation soaring with no end in sight, the UK government will try to keep the 2023 increases below RPI.

However it didn’t reveal how it intends to calculate the rises.

The Consumer Prices Index including owner occupiers housing costs (CPIH) increased by 8.8 percent in July in comparison to 8.2 percent.