Russia-Ukraine conflict triggers inflation to rise to record levels in UK

London: Inflation in the United Kingdom has scaled historic heights because of the Russia-Ukraine conflict. The inflation index is at 9.1% in the United Kingdom in May, which would be the highest among the G7 countries. Analysts and experts have predicted that inflation will reach 11% with increasing fears of recession and crisis due to unsustainable Costs of Living.

Moreover, the leaderships of United States and the United Kingdom wanted to penalise Russian President Putin by targeting Russia’s economy for invading Ukraine by imposing stringent sanctions. However, it appears that the effects of sanctions imposed are hurting the western economies instead. Most of the countries that imposed sanctions on Russia are facing high inflation. With no short-term relief in sight, the western economies would slump into recession.

The inflation index in the United Kingdom has reached 9.1%, the highest in the last 40 years. There is a massive increase in the prices of almost all essential commodities, including fruits, food grain and fuels. There is a rise of 8.7% in the food grain and fruit prices. Resentment is growing as electricity rates have increased by 20%. The fuel rates also have reached record levels in the United Kingdom and effects are becoming apparent in all the sectors.

The British Media is claiming that growing resentment is due to inadequate steps by the government to control the growing inflation. Interest rate hikes by the central bank have almost did not affect inflation rise. Instead, there are signs of inflation increasing further. Analysts are claiming that the United Kingdom will face a major economic crisis due to the import of energy and the tensions prevailing with the European Union.

The record inflation rise has impacted the British stock markets. On Wednesday, the stock indices and FTSE100 reported a decline of 1.5% to 2%.