Inflation soars in Great Britain
The global evil that is inflation is on the march and this inflation is hitting hard in the United Kingdom, which accelerated again in February to 6.2% over one year after 5.5% in January, and remains at a record level in nearly 30 years, announced Wednesday, March 24 the Office for National Statistics (ONS).
Since 1992, inflation had not reached this level as high, said the ONS in a statement. British households will be hoping for a boost from the government on Wednesday 23 March as Chancellor of the Exchequer Rishi Sunak is expected to make a budget speech in Parliament.
It is clear that rising energy prices, including household electricity and gas bills, but also fuel, were a major factor in pulling up prices in February, according to the ONS. But “prices rose across a wide range of goods and services, affecting products as diverse as food and toys and games,” commented ONS chief economist Grant Fitzner on Twitter.
Clothing majors such as H&M and Zara, whose prices were hurt by pandemic-related closures last year, are also seeing prices rebound, as are the furniture and flooring sectors, according to the ONS.
If inflation rises to this level it could reach 8% this year, according to the Bank of England, which has already raised interest rates three times in the past few months in an attempt to calm the situation.