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Inflation, which has hit an annual rate of 13% this year, is behind the country’s cost of living crisis, which has hit some Britons hard this year and forced leaders to find solutions.File photo of Andy Wren/EPA-EFE
September 14 (UPI) – Much like the US, UK inflation moderated slightly in August, mainly due to lower energy costs, including gasoline.
data from National Bureau of Statistics Inflation slowed to 9.9% in the 12 months to August, it showed on Wednesday. In July, that number exceeded 10 percent. Inflation rose by 0.5% from July to August.
Inflation, which has hit an annual rate of 13% this year, is behind the country’s cost of living crisis, which has hit some Britons hard this year and forced leaders to find solutions. Some analysts say the UK could enter a recession by the end of the year.
Core inflation – a measure that excludes food and energy costs – rose 0.8% from July, data from the Office for National Statistics showed on Wednesday. Overall consumer costs in August were 6.3% higher than a year ago.
“Rising food prices contributed the most to rate changes, partially offsetting the rise,” the government office said in the report. NBC Finance Channel.
Inflation behaviour in the UK is similar to that of many other countries. In the euro zone last month, Prices rose more than 9% – and the United States 8.3% annual growth. However, the U.S. data marked the second straight month of slowing inflation.
To help control inflation, the Bank of England raised interest rates by half a percentage point in August and is expected to order a 0.75% hike at its next policy meeting on September 22.Courtesy of Andy Wren/EPA-EFE
In the UK and US, a major factor in inflation rates is energy prices. U.S. natural gas prices drop sharply during the summer.
The UK economy has been squeezed by a combination of factors this year, including high wholesale gas prices and supply disruptions caused by Russia’s war in Ukraine. In response, the Bank of England voted in August to raise interest rates by half a percentage point, the sixth hike since December and the largest rate hike in Britain since 1995.
The Bank of England is expected to raise interest rates by three-quarters at its next policy meeting on September 22. The U.S. central bank has raised interest rates by 0.75% in the past three meetings.
Last week, in her first major move as Britain’s new prime minister, Liz Truss announced a Plan to help millions of Britons pay their utility bills by limiting costs. The move is expected to save the average UK household around $1,000 a year. Economists expect the plan to cost $230 billion and keep inflation in check in the short term.
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