Inflation in the United Kingdom again crosses 10% amid Political Turmoil -

London: Inflation in the UK has once again crossed 10% amid political upheaval, Russia- Ukraine war and soaring fuel prices. On Wednesday, the Office for National Statistics of the UK reported that the inflation index was recorded at 10.1% in September. Once again, in just three months, the inflation has exceeded 10 per cent. Earlier in July, the reported inflation rate was 10.1 per cent. It is the highest inflation index reported in the UK since 1982.

The rise in prices of food grains, eggs, milk, and processed food, along with fuel, has accounted for a high inflation index. The cost of milk has gone up by 40%, whereas prices of pulses and eggs have gone up by 20%. The fuel prices have spiked, and the electricity bills are beyond affordable for many people. Analysts claim that the effects of the Russia- Ukraine war, the energy crisis and political upheaval are causing the high inflation.

British Prime Minister Liz Truss presented the mini-budget last week. There was a strong reaction to the budget from the financial sector and ordinary citizens. The increased prices of many other components, including houses, have impacted the inflation index. Although Prime Minister Truss has withdrawn the mini-budget by sacking the finance minister, it is said it will take some time for the effect to subside.

To manage inflation, the UK’s central bank has increased interest rates. However, the new data suggests that it has not had much success. Andrew Bailey, Governor of the Bank of England, has already warned that Britain could face record inflation in the coming months, terming it as a financial cost of the war. Therefore, it seems that the British people will have to face the cost-of-living crisis for the next few months.