In March, UK inflation reached its highest level in three decades. Not only in the UK, but in March, US inflation rose to its highest level in 40 years. In fact, from July-August last year, inflation began to rise worldwide. Inflation has risen sharply since the recent Russian invasion of Ukraine.
Last February, the UK’s annual inflation rate was 7.2 percent. In March, it rose to 6 percent, the highest since 1992. However, according to many economists, inflation will continue to rise. News Reuters.
Analysts believe that the rise in food and furniture prices, ranging from car fuel, is the reason for the rise in inflation. Prices of food, fuel, alcohol and tobacco rose 5.6 per cent in March from 5.2 per cent in February, according to the UK government.
In fact, according to the UK government, British families are facing the biggest reduction in living expenses since 1950. This inflation is bad news for the government.
British Finance Minister Rishi Sunak said in this regard, ‘I know the condition of the people of the country now, they are spending their days in anxiety. Steps have been taken to provide financial assistance to the people for that.
However, economists believe that the situation is not very good for Sage Sunak. The global economy is once again under pressure due to rising fuel prices and renewed supply crises in various parts of the world, including China. Last month, the UK Budget Office predicted that by the end of 2022, inflation would reach a record high of 7.8 percent. And then the inflation rate will be the highest in the last 40 years.
The Bank of England is expected to do what the central banks do in this situation. It is learned that the policy interest rate will be increased to zero point 25 percent by May. But analysts believe that this will not lead to a surge in inflation. Economists have suggested that the policy should be more aggressive in raising interest rates to curb inflation.