London: There is a record flare-up of inflation in the United Kingdom, riding on the continuing high prices of fuel and food grain. In June, the inflation index was reported at a record level of 9.4% in the United Kingdom. The ‘Cost of Living Crisis’ faced by the British population has intensified as inflation has remained above 9% for two successive months. This is the highest inflation rate reported since 1982, making the United Kingdom the country with the highest inflation index among the G7 countries.
Fuel rates rose by 10% in just a month, and there is an increase of 1.2% in the food grain prices. These include milk, dairy products, vegetables, meat, eggs and ready-to-eat foods. There has been an increase of more than 70% in the electricity rates in the last year, and there are indications that the rates will continue to remain high in the coming times. Sources claimed that the British central bank is preparing to increase interest rates by 0.5% because of this rising inflation.
The US and UK leaderships had warned that Russian President Vladimir Putin, who ordered the attack on Ukraine, would be taught a lesson by targeting the Russian economy. But in reality, the sanctions imposed by the western countries have seemingly boomeranged on the western countries themselves. Inflation has flared up in most countries taking the initiative to impose sanctions against Russia. Indications are that this high inflation will continue for the next few months, and claims are being made that this could culminate in a recession.
The media claimed that the feeling that the British government is not doing enough to contain the inflation is intensifying. Although the central bank took the step to increase interest rates to control inflation, there has been no effect on inflation. Therefore, the British opposition parties are criticising the government and concerned agencies. Analysts and opposition leaders have criticised the British families for being on the brink of a crisis. Experts have predicted that the inflation index in the United Kingdom can go up to 11%.
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