British inflation unexpectedly rose 10.4 percent last month, reports the British statistics agency ONS. In January, that was still 10.1 percent. Economists expected a fall to below 10 percent.
As a result, the purchasing power of the British will come under further pressure because wages in the United Kingdom are rising much less rapidly. Rising inflation is also a setback for Treasury Secretary Jeremy Hunt.
He wants inflation to more than halve this year, reduce the national debt and let the economy grow again. Hunt predicted that UK inflation would be less than 3 percent by the end of this year.
Due to the sky-high inflation, which is also higher in the UK than in many other countries, many Britons have had financial problems. In the country, therefore, there have been regular strikes for months by all kinds of professional groups who want a higher salary.
On Thursday, the Bank of England will announce whether it will raise interest rates again to curb inflation. That would be the eleventh rate hike in a row.
Be First to Comment