UK headline inflation hit 9% in April, marking its highest level in 40 years thanks in large part to the rising costs of gas and electricity which has driven the average bill close to £2,000 (US$2,484), according to the Office for National Statistics.
Average petrol prices rose to a record 161.8p a litre in April 2022 from 125.5p a year earlier. Diesel was another factor behind the increase in the consumer prices index from 7% in February after the average cost at the pumps hit a record high of 176.1p a litre, leading to an average increase over the last 12 months in motor fuels of 31.4%. –The Guardian
Meanwhile, food banks are reporting an increase in demand for food packages, while small business owners say a combination of higher taxes and increased costs have pushed them to the edge of bankruptcy, according to the report.
Adding to the problem is the end of a temporary VAT cut for the hospitality industry from 20% to 12.5%, as hotels and restaurants say they can’t shield customers from the increase.
According to the Resolution Foundation cited by The Guardian, the poorest 10% of households faced an inflation rate of 10.2% in April, significantly higher than the 8.7% felt by the top 10% of earners.
The pain is being felt across all sectors of industry and commerce, putting pressure on the government and central bank to take action as we noted earlier Wednesday. Meanwhile, investors pared back bets on BOE rate hikes in anticipation of the scorching inflation, with money markets pricing around 120bps from the previous day.
Read More: Brits “Most Miserable” In 30 Years As Inflation Soars To Thatcher-Era High