Britain’s cost-of-living crisis deepens
Inflation in the country hit a new 40-year high in May, official data shows
UK’s consumer prices index (CPI) rose from 9% in April to 9.1% last month, a level unseen since February 1982, according to the Office for National Statistics (ONS). It is the highest rate in the G7 group of wealthy nations.
Data showed the inflation is being fueled by soaring food and energy costs. The ONS said that food and non-alcoholic drink prices have risen at the fastest annual rate since 2009, with the most dramatic increases seen in the cost of bread, cereals and meat.
Housing and household services, primarily electricity, gas and other fuels, along with transport, have also been driving the inflation rate.
Soaring prices for petrol and diesel have added to the pressure on motorists and businesses, with a 32.8% jump in fuel costs over the past year – the biggest annual increase since 1989.
“Disappointingly, the cost-of-living crisis is not going to be a short-lived affair, and this ultimately leaves the Bank of England stuck between a rock and a hard place,” portfolio manager at Quilter Investors, Paul Craig told CNBC.
Last week, the Bank of England projected the CPI measure of inflation to reach 11% later this year, amid soaring gas and electricity prices.
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