Market experts say that there will be a sharp fall in the price of energy next year, due to which the pace of decline in inflation will accelerate.
Retail inflation in England at a three-decade high.
Dearness continuously increasing (Rising Inflation) is going. This problem is getting serious all over the world. In January, the inflation rate in England has reached the highest level of 30 years. This is the highest level since March 1992. UK last month consumer price index ,Consumer Price Index) stood at 5.5 per cent. In the midst of rising inflation, it is expected that bank of england ,Bank of England) may increase the interest rate. Due to inflation, the budget of UK families has deteriorated. National Statistics Office (Office for National Statistics) said on Wednesday that the consumer price index rose to 5.5 percent in January. It was at 5.4 per cent in December. The latest figure is the highest since March 1992. At that time the rate of inflation in Britain had reached 7.2 percent. At the same time, the inflation rate in the US has reached a high of 7.5 percent in the last nearly four decades. On the other hand, the inflation rate has reached a record 5.1 percent in 19 countries that use the euro currency.
According to a Reuters report, the Bank of England said last month that inflation will continue to rise for now. In April, it can reach 7.25 percent. The biggest reason for this will be the energy bill. On an average, the electricity bill of the family will be one and a half times. Ambors Crofton, global strategist at JP Morgan Asset Management, said rising inflation has put pressure on the central bank to raise interest rates.
Interest rate has been increased from 0.10 to 0.50 percent
The Bank of England has already increased the interest rate twice. It was raised for the first time in December, when the interest rate was increased from 0.10 per cent to 0.25 per cent. On February 3, it was again increased to 0.50 per cent. It is believed that in the month of March, it will be increased to 0.75 percent or 1 percent.
By the end of this year, the interest rate may be 2 percent
After the release of inflation data, the bond yield for two years reached the highest level in the last 11 years. This is the highest level since 2011. The Bank of England has set an inflation target of 2 percent. It is believed that to achieve this goal, by the end of this year, the central bank will increase the interest rate to 2 percent. The BoE believes that the inflation target of 2 per cent cannot be achieved before 2024. However, economists say that inflation will fall sharply.
There will be a huge drop in the price of energy next year
Market experts say that there will be a sharp fall in the price of energy next year, due to which the pace of decline in inflation will accelerate. Apart from this, the global supply chain will also be strengthened. Crude oil reached the level of $ 96 between Russia and Ukraine Crisis. However, at the moment it is at the level of $ 94.