Inflation flares up to record level in the United Kingdom

London: Inflation in the UK has crossed the 10% mark against the background of the Russia-Ukraine conflict and soaring fuel prices. On Wednesday, the British Office of National Statistics announced that the country’s inflation index reached 10.1%. This is the highest level since 1982. United Kingdom has become the country with the highest inflation index in G7, the group of leading countries in the world. A few days ago, Andrew Bailey, the governor of the Bank of England, the British central bank, said that the economic price of the conflict has to be paid and warned that United Kingdom will have record inflation over the next few months.

The United States and United Kingdom’s leadership warned to teach a lesson to Russian President Vladimir Putin, who attacked Ukraine by targeting the Russian economy. But in reality, the sanctions the Western countries imposed against Russia have started to ‘boomerang’ and backfire on them. Inflation has flared up in most leading countries that have imposed sanctions on Russia. In United Kingdom, the inflation index is reported to have gone up to 10.1% in July. The inflation rate in the country was 9.4% in June. The level in July is the highest in the last four decades. Prices of most essential commodities, including food grains, fruits and fuel in the United Kingdom have increased sharply. Fuel prices in the United Kingdom have hit record highs and the effect is being felt across the board.

The British central bank has implemented a policy of continuously increasing interest rates to prevent inflation. But new statistics show that the move is not getting much success. Citigroup, a US financial institution, has predicted that the inflation rate in the United Kingdom may go up to 15%. Analysts and economists have warned that the British people will have to face the ‘Cost of Living Crisis’ and recession at the same time. There has been strong displeasure from the industrial sector in the United Kingdom and criticism is being made that no one is taking proper responsibility to curb inflation.