UK Inflation Hits A 40-Year Record, Bitcoin Drops More Than 2.5%
With 10.1% inflation, the UK joins 2 billion people worldwide suffering as price increases erode buying power.
According to the Office for National Statistics (ONS), the inflation rate in the United Kingdom hit 10.1%. In the 12 months to July 2022, the Consumer Price Index (CPI) increased by 10.1%. It represents a considerable increase from 9.4% in June.
According to Alex Gladstein, chief strategy officer at the Human Rights Foundation, the United Kingdom is one of many countries experiencing double-digit price rises. More than 2 billion individuals globally are affected by the situation in which purchasing power is rapidly eroding.
Core inflation, excluding energy, food, alcohol, and tobacco, stood at 6.2% in the year to July 2022, up from 5.8% in June and above forecasts of 5.9%.
The ONS said in its report, that rising food prices played the biggest role in driving the high annual inflation rate between June and July.
The agency repeated that estimates of consumer price inflation modeled according to their indicator model “show that CPI rates were above current levels around 1982, where estimates ranged from nearly 11% in January down to about 6.5% in December.”
The Bank of England has carried out six consecutive rate hikes to curb inflation and earlier this month announced its biggest increase since 1995 while forecasting that the UK will enter a long recession since the global financial crisis.
The bank expects inflation to hit 13.3% in October. Conservative leadership candidates Liz Truss and Rishi Sunak are under increasing pressure to come up with radical solutions to the historic cost of living crisis.
Richard Carter, head of fixed-rate research at Quilter Cheviot, predicts that the Bank of England is likely to react at its next monetary policy meeting with another 50 basis point rate hike. in an effort to combat inflation.
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