Inflation in UK surges to fastest rate in almost 30 years

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Inflation in the United Kingdom rose by 5.5 percent in the year ending last month, marking the fastest rate in just under 30 years.

The rise in the consumer price index (CPI), which tracks inflation, was the fastest recorded since March 1992, according to the Office of National Statistics, which released new data on Wednesday. British inflation increased by 7.1 percent annually in January.

The annual CPI increased by 0.1 percent between December 2021 and January of this year, from 5.4 percent of 5.5 percent.

The price of electricity in the U.K. was up by 28.3 percent in the year ending last month, and electricity prices had increased by 19.2 percent. The Office of National Statistics said the hikes were “because of changing energy prices in Northern Ireland.”

Additionally, owner-occupier housing costs increased by 2.4 percent in the year ending last month, and rental rates grew by 2.3 percent.

The U.S. is currently experiencing even higher levels of inflation, posing an ongoing danger to Democrats ahead of November’s midterm elections. U.S. consumer prices rose 7.5 percent annually in the year ending last month, the fastest rate since 1982. Price increases for food, electricity and shelter were the largest drivers of the inflation growth.

The U.S. has seen elevated levels of inflation since the middle of last year, as the country worked to recover from the COVID-19 pandemic. High levels of demand, however, clashed with low supply, labor shortages, shipping bottlenecks and other pandemic-related issues, which led to price increases nationwide.

Circumstances will likely worsen for the U.K. in the near future, according to The Associated Press, as the country’s energy regulator said gas and electricity prices will rise by 54 percent in April — a development that will affect 15 million households. The price spike will also take effect the same month income taxes are scheduled to grow by 1.5 percent, according to the AP.

Tags Consumer Price Index economy Inflation Macroeconomics Price indices

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