Inflation continues to rise in Great Britain, which exceeds 10% (10.1%) in July e it has reached its peak in 40 years. The increase in prices compared to a year ago is higher than expectations which indicated 9.8%. Compared to June 2022, prices have risen by an average of 0.6%. The British central bank expects inflation to start erode the level of consumption pushing the country in recession starting next winter. The chief economist of the English Institute of Statistics, Nadhim Zahawi, he explained that “A wide range of products have helped push inflation up. Food prices have gone up a lot, especially bakery, vegetables and meat“. But the main cause of the price rush energy remains, gas is traded in London at three times that of a year ago. The costs of the bills have come to exceed the 4 thousand pounds year (4,760 euros).
According to analysts, today’s data puts it further pressure on the Bank of England to intensify its monetary tightening. The central institution has already carried out six consecutive rate hikes. Tighter monetary conditions, ie less money in circulation mostly in the form of credit, they tend to help curb the price rush. On the other hand, however, they penalize economic growth. Yesterday the statistical institute remarked how the British families have suffered a marked decline in real wages, with a severe loss of purchasing power. Between April and June, wages grew on average by 4.7% (5.9% in the private sector, 1.8% in the public) but in the meantime the increase in prices was higher, effectively reducing the real value of the envelopes. pays 3%. An increase in workers over 65 who remain at work or return to look for it due to the difficulty in balancing family budgets. The government has so far launched support measures for 37 billion pounds (44 billion euros) and a discount of 400 pounds per family for bills.