Business & Economy

UK inflation hits double figures for first time in 40 years

London, Aug 17 (EFE).- The United Kingdom’s inflation rate hit double figures for the first time in 40 years as the Consumer Prices Index (CPI) rose to 10.1% in July, the Office for National Statistics said Wednesday.

The figure, up from 9.4% in June, is the highest since February 1982, when the CPI stood at 10.4%, according to the ONS.

Increasing energy, food, beverage and transport prices have driven the spike in inflation. The sharpest increase was in prices of food and non-alcoholic drinks, which increased by 2.3% from June to July this year.

“Food prices rose notably, particularly bakery products, dairy, meat and vegetables, which was also reflected in higher takeaway prices,” Grant Fitzner, chief economist at the ONS, said.

Finance minister Nadhim Zahawi pledged on Wednesday to do all he could to seek options for the next prime minister, who will replace Boris Johnson in September, to offer businesses and families more support in the face of the rising costs.

The two contenders, Liz Truss and Rishi Sunak, are under pressure but have not yet revealed their plans to tackle inflation.

The Bank of England recently raised interest rates from 1.25 to 1.75% to control inflation and warned that it may reach 13% before the end of the year, while anticipating the UK could enter a recession in the last quarter of 2022 and that the crisis could continue into 2023. EFE


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