UK Inflation is Rising at an Alarming Rate in 03 Decades

Last month, consumer prices in Britain increased at their quickest rate in 30 years, driven by rising expenses for household electricity and vehicle fuels, the latest sobering statistics as inflation soars globally.

According to the Office for National Statistics, inflation in the United Kingdom surged to 7 percent in the year that ended in March, the highest annual rate since March 1992.

 The Office for National Statistics said on Wednesday that inflation in the United Kingdom increased to 7 percent in the 12 months ending in March, the highest annual rate since March 1992. 

As soaring energy costs, rising food prices, and tax increases eclipse higher salaries, economists predict that the UK will experience the largest reduction in living standards since the mid-1950s.

As demand quickly recovered from the COVID-19 pandemic and Russia's war in Ukraine further increased energy costs and constrained supply chains, people all across the world are feeling the pinch of inflation. 

The Labor Department said on Tuesday that consumer prices in the US increased by 8.5 percent from a year earlier in November, which was the quickest rate in more than 40 years. Inflation in the 19 European nations that use the euro shot up to 7.5 percent last month, setting a new record for the fifth month in a row.

According to the government's independent budget advisor, the cost of rising prices in the UK would cause disposable family earnings to decline by 2.2 percent this year, inflation-adjusted. 

As the world economy recovered from the COVID-19 pandemic, driving up global energy demand, household natural gas prices increased by 28.3% over the previous year, and electricity costs increased by 19.2%.

After Britain's energy regulator approved a 54 percent increase in gas and electricity bills for millions of people, which went into effect in April, prices will continue to grow. 

The cost of gasoline and diesel fuel has increased by an average of 30.7 percent over the last year, which is the highest increase since current records began in January 1989, according to the Office for National Statistics, which also noted an increase in transportation costs.

Countries are hiking interest rates in an effort to lessen the pain brought on by rising food, gasoline, and other cost. The U.S. Federal Reserve increased its benchmark short-term rate last month and is anticipated to continue doing so, possibly quickly. The Bank of England has increased its key interest rate three times since December.

While the European Central Bank has accelerated its withdrawal from economic stimulus programmes designed to fight inflation, it has not implemented any more drastic measures. Next meeting is on Thursday.