UK inflation highest in a decade and rising

The UK inflation rate has hit the highest figure for almost a decade, with surging energy prices believed to be driving that increase. The country’s Central Bank- the Bank of England- is under pressure to increase the interest rate in response. But experts are divided over the impact of that or any other measure on the steep rise in the cost of living.

Feeling the pinch at gas stations, in restaurants bills and even used cars: wherever you look, prices in the UK are on the way up.

And while prices rise for everyone, they affect some much more than others, especially those in dire straits. With costs sky-rocketing, so too is demand for help.

Inflation is now at levels not seen in a decade with a steep rise in gas and electricity bills being the biggest factor. The cost of second hand cars has soared too, up more than a quarter since April and putting gas in that car much more expensive than only 12 short months ago.

As scary as it looks today, a lot of economists warn the worst is yet to come, with increased energy prices expected to push inflation past five percent next year. The Bank of England is under pressure to raise interest rates in response. But the fact is there are powerful global economic forces at play in all this and experts say the decisions made by policy makers here will have a limited impact.

They also say, the increase in interest rates is now almost certain.

The fear at the start of the first lockdown was long-term Covid-induced economic scarring. Today the economy seems to be bouncing back, employment figures are improving, but the country’s inflationary ills are worsening, taking away from what’s left in ordinary Britons’ pockets.

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