Inflation in the UK will still reach double digits by the end of this year. This is according to the current estimate of the Bank of England. However, May inflation increased only slightly compared to April.
Food prices are rising
The UK is experiencing its highest rate of price growth since March 1982. Prices here rose by 9.1 percent year-on-year in May, which is a tenth of a percentage point more than in April. This is according to current data from the National Statistical Office. Food was the main driver of inflation. Their prices rose by 8.7 percent year-on-year, the fastest growth since March 2009.
Inflation will rise even further
At the same time, the United Kingdom has gained a sad first place within the G7 group of countries, which includes the seven most economically powerful countries in the world. But according to the Bank of England’s estimates, the worst is still ahead for the British. Central bankers predict that annual inflation will remain above nine percent for several more months. Its culmination could come in October, around the 11 percent level. That is when the temporary capping of energy prices for households will end. It is therefore likely that the Bank of England will proceed with further interest rate hikes.