LONDON – British inflation surged to a new 40-year high in July on rising food prices, official data showed today, adding to a cost-of-living crisis as the country faces the prospect of recession.
The Consumer Prices Index (CPI) accelerated to 10.1% last month from 9.4% in June, the National Statistics Office said.
The Bank of England warned earlier this month that inflation will climb to just over 13% this year, the highest level since 1980.
It also projected that the country would enter a recession that would last until late 2023.
The central bank raised its key rate by 0.50 percentage points to 1.75% at its last policy meeting, the biggest hike since 1995.
The BoE move mirrors aggressive monetary policy from the US Federal Reserve and the European Central Bank last month, as the world races to cool red-hot inflation that has been fuelled by Russia’s invasion of Ukraine.
The UK statistics office said the “largest movements” in the CPI in July came from food.
Bread and cereals were the largest contributors to the rise in food prices, followed by milk, cheese and eggs. – AFP, August 17, 2022
