The United Kingdom is the first major world economy where the rate of price level growth has been above 10 per cent. July inflation is the highest ever since February 1982, more than four decades ago.
First G7 country with double digit inflation
Prices in the UK rose by 10.1 per cent year-on-year in July. This is 0.7 percentage point higher than in June. The UK has become the first G7 country to see its price rises reach double digits in the current inflation crisis. And so far, it seems that it will remain the only country for at least a few months. In the United States, annual inflation had fallen to 8.5 % in July from 9.1 % in June.
Food price increase
The main reason for the relatively large increase in inflation, according to British statisticians, is the rise in the price of food, which has risen by 12.6 percent. This is the most since 2008. In the case of energy or fuels, on the other hand, there seems to be some easing of inflationary pressures. Still, economists expect the Bank of England to raise interest rates again at its next meeting. The majority estimate is at 2.25 percent, Reuters reported.
