Consumer price inflation reached 9% in April, the National Statistics Office said, surpassing even the peaks of the recession of the early 1990s, which many Britons remember with incredible interest rates and widespread mortgage defaults.
A Reuters survey of economists shows a reading of 9.1%. Sterling fell after the data and fell 0.4% against the US dollar.
Rising energy bills were the biggest driver of price growth in April, reflecting last month’s increase in regulated energy tariffs.
Sunak said countries around the world are affected by high inflation.
“We cannot fully protect people from these global challenges, but we provide significant support where we can, and we are ready to take further action,” he said.
Anti-poverty activists have called on him to act now, starting with an immediate increase in the value of social benefits to keep up with inflation.
“As the prices of basic things like food and energy continue to rise, [Sunak’s] inaction will make the desperate situation even worse for many, “said Rebecca MacDonald, a senior economist at the Joseph Rowntree Foundation, which campaigns for lower-income households.
A poll released on Tuesday found that two out of three people in the UK turn off their heating, almost half drive less or switch supermarkets, and just over a quarter say they have missed a meal.
Earlier this month, the Bank of England forecast inflation to reach 10% later this year, and investors expect the BoE to add to the four rate hikes it has made since December, leading to 1%, its highest 2009
“Things will get worse before they get better,” said Paul Dales, chief economist in the United Kingdom at Capital Economics on Wednesday.
There were signs of further inflationary pressures, as producers experienced the largest co-increase in prices they pay for their raw materials, rising by 18.6% a year, corresponding to the highest level since March.
Factories rose 14% in the 12 months to April, the biggest jump since July 2008.
Add Comment