• Home
  • Blockchain
  • Crypto
  • Defi
  • NFT
  • Trading
  • World News
  • Contact
What's Hot

How Rising Tobacco Prices are Affecting Smoking Cessation Around the World

March 8, 2023

Is it possible to buy NFT and help the Ukrainian army at the same time?

February 17, 2023

Ukraine Stands Strong: The SpendWithUkraine.com Initiative

February 2, 2023
Facebook Twitter Instagram
  • Home
  • Blockchain
  • Crypto
  • Defi
  • NFT
  • Trading
  • World News
  • Contact
CryptodailyNews24
  • Home
  • Blockchain
  • Crypto
  • Defi
  • NFT
  • Trading
  • World News
  • Contact
CryptodailyNews24
Home»World News»UK: new record for inflation
World News

UK: new record for inflation

Donald MunnBy Donald MunnAugust 21, 2022Updated:September 29, 2022No Comments3 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email

Annual inflation in the UK hit a new record in July. 

UK: inflation at historic high

It turned out to be even higher than 10%, which is a level that has not been seen for more than 40 years. 

The surge began in October last year, when it rose above 4%. But it was during 2022 that it literally exploded, particularly in April when it rose above 9%. It has remained above this threshold ever since, growing further month by month to 10.1% in July. 

We have never seen such high peaks since the European currency has existed, even though Britain has not adhered to the euro and has retained its British pound. 

As far as the Eurozone is concerned, inflation in July was just shy of 9%, with the surge that began in March when it was well over 7%. 

These figures seem to reveal rather clearly that a significant, though not complete, role was played by the war in Ukraine, and the consequent rise in prices of fossil hydrocarbons imported from Russia. 

For although the upward parabola of inflation began long before the outbreak of the war, it had nevertheless remained below 6% in both Britain and the Eurozone until February. So the primary cause was not the outbreak of war in Ukraine – an event that occurred in late February – but most likely the ultra-expansive monetary policies of central banks themselves, including the BoE (Bank of England). 

However, just between February and March, inflation literally exploded in countries such as Britain and those in the Eurozone, where it had never been above 6% in the past 30 years. 

It is enough to mention that since February 2020, which was the time of the outbreak of the pandemic, the BoE‘s balance sheet went from 60 billion to 80 billion British pounds in three months, and then exceeded 100 billion at the beginning of the last quarter of 2021, and went up to 110 billion at the end of the year. Since then, during 2022 it has fallen to the current 108 billion, or slightly less than double the pre-pandemic level. 

This caused inflation to rise significantly to 5.5% in January 2022, while then the outbreak of war in Ukraine did the rest. 

Moreover, according to analysts’ forecasts, inflation was believed to have risen to 9.8% in July, and instead, for the first time in the past 40 years, it even exceeded 10%. 

The London Stock Exchange did not react well to the news, but so far has lost only 0.5% compared to yesterday. It is possible that somehow the current bad situation had already been discounted in the past few months, as the BoE itself makes no secret of the fact that it expects further rises in inflation to perhaps as high as 13% in October 2022. 

In fact, during the course of the year, it raised interest rates six consecutive times, the largest single increase since 1995. 

The post UK: new record for inflation appeared first on cryptodailynews24.com.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
Donald Munn
Donald Munn
  • Website

Related Posts

How Rising Tobacco Prices are Affecting Smoking Cessation Around the World

March 8, 2023

Ukraine Stands Strong: The SpendWithUkraine.com Initiative

February 2, 2023

Cryptocurrencies and startups related to mental health are important topics in today’s world, which have become especially relevant in the era of the COVID-19 pandemic

December 26, 2022

Fed upsets the markets by dictating a hawkish line

September 1, 2022
Add A Comment

Comments are closed.

Advertisement
Top Posts

Subscribe to Updates

Get the latest sports news from SportsSite about soccer, football and tennis.

The latest news about Bitcoin, ICO, blockchain and fintech.

Top Insights

How Rising Tobacco Prices are Affecting Smoking Cessation Around the World

March 8, 2023

Is it possible to buy NFT and help the Ukrainian army at the same time?

February 17, 2023

Ukraine Stands Strong: The SpendWithUkraine.com Initiative

February 2, 2023
Get Informed

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

  • Home
  • Blockchain
  • Crypto
  • Defi
  • NFT
  • Trading
  • World News
  • Contact
© 2023 cryptodailynews24.com Submit news release

Type above and press Enter to search. Press Esc to cancel.