Expensive energy is the main cause of inflation, which in the UK rose in April to its highest level since 1982. British Finance Minister Rishi Sunak has admitted that the government is unable to protect all citizens from the effects of price hikes.
Consumer prices in the UK rose by a flat nine per cent year-on-year in April, according to the Office for National Statistics. Inflation in the UK is now the highest it has been since the early 1980s, and has even surpassed that of the early 1990s, which many Britons still remember well.
Britain faces one of the highest inflation rates
The UK is one of the major economies facing some of the highest inflation ever. Within the G7 countries, the UK holds a dismal lead in inflation rates. Rising energy prices, including increases in the regulated components of energy bills, can be identified as the main cause of the record high price level.
Decline in purchasing power
One consequence is the biggest fall in the purchasing power of British wages since the 1950s. “We cannot completely protect people from the impact of negative global factors, but we help where we can. And we are ready for the next steps,” said Rishi Sunak, the British finance minister, in a statement.