Britain’s inflation rate reaches 40-year high, the effect of a jump in food prices

UK inflation at 40-year high

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The Bank of England had predicted only last week that the inflation rate would remain above 9 percent in the coming times. At the same time, with the increase, the inflation rate can reach 11 percent in the month of October.

There is no reduction in the impact of inflation in countries around the world. There is already pressure on poor countries, while on the other hand, inflation rate in developed countries is continuously reaching record high levels. According to the figures released today, Britain (Britain) has reached a 40-year high and is currently at the highest level among the G7 countries. According to the data, the rise in the inflation rate of Britain was seen due to the rise in food prices. According to the news of Reuters, economists are assuming that the situation may worsen further and Britain will have a higher inflation rate ,inflation) and may have to go through a dangerous situation of sluggish growth rate. At the same time, it has been said in the report that this figure of inflation rate is also more than the estimates.

Where did the UK inflation rate reach?

According to the data released, British consumer price inflation has reached a level of 9.1 percent in the month of May due to the rise in food prices. A Reuters poll estimated an inflation rate of 9 percent. According to the Office of National Statistics, this level of inflation is the highest level since March 1982. The Reuters report quoted experts as saying that the situation has become more difficult since Brexit. Because Britain has now become a more closed economy than before, which has had a bad effect on productivity and income. With this, Britain’s inflation rate is at the highest levels among developed countries. Inflation in the US, France, Germany and Italy in May is below this level. Japan and Canada are to release their May figures. However, experts believe that the inflation figures of these countries will be much below the inflation rate of Britain.

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Difficulties will go ahead for Britain

The Bank of England had predicted only last week that the inflation rate would remain above 9 percent in the coming times. According to the central bank, they can reach a record level of 11 percent in October. When there will be an increase in the rates of electricity bill. It is estimated that after this inflation rates are expected to soften. There has been an increase in the rates of food and drink in the month of May. The inflation rate of food and non-alcoholic drinks has been 8.7 percent and it has contributed the most to increase the overall inflation rate.