Inflation soars to its highest rate in THREE DECADES

Inflation soars to 30-YEAR high of 5.4% with worse to come for desperate families as Boris and Rishi face mounting pressure to curb energy billsand Bank of England could hike rates again

  • Consumer Price Index inflation up by more than expected to 5.4% 십이월에
  • ONS says inflation rate is now at its highest since March 1992 였을 때 7.1%
  • Rise was above economistsforecast of 5.2% and up from the 5.1% 11 월
  • It adds pressure on the Bank of England to raise interest rates again next month
  • The rate of Consumer Price Index inflation in Britain has increased by more than expected to 5.4 퍼센트 – its highest rate in 30 연령, official data revealed today.

    The Office for National Statistics said December’s figure was up from 5.1 per cent in November, and is the highest since 1992 as the cost of living squeeze continues.

    Economists polled by Reuters had forecast that the rate would get to 5.2 per cent in Decemberso the official reading was 0.2 percentage points above estimates.

    Household finances are under pressure as gas and electricity tariffs have also seen major rises and supply chain problems are pushing up costs across the economy.

    The ONS said the price of goods produced by UK factories was up 9.3 per cent in the year to Decemberslightly down from the 9.4 per cent rise in the year to November.

    And the price of materials and fuels used by manufacturers rose 13.5 per cent in the year to December, down from the 15.2 per cent growth in the year to November.

    It comes after separate data yesterday revealed that wage growth was outstripped by inflation in November 2021 in more than a yearfor the first time since July 2020.

    An ONS graph of the Consumer Prices Index including owner occupiers' housing costs (CPIH), the Consumer Prices Index (음식과 같은 일상 용품의 가격을 조사하는) and the owner occupiers' housing costs (OOH) component

    An ONS graph of the Consumer Prices Index including owner occupiershousing costs (CPIH), the Consumer Prices Index (음식과 같은 일상 용품의 가격을 조사하는) and the owner occupiershousing costs (OOH) component

    The inflation rate adds pressure on the Bank of England to raise interest rates again next month

    The inflation rate adds pressure on the Bank of England to raise interest rates again next month

    The inflation rise reflected a range of goods and services, with the biggest impact from food and drink, followed by restaurants, hotels, furniture and household goods.

    그만큼 5.4 per cent figure was the highest since March 1992, when it was at 7.1 퍼센트. It adds pressure on the Bank of England to raise interest rates again next month.

    The Bank last month became the world’s first major central bank to raise interest rates since the start of the pandemic, ...에서 0.1 퍼센트 0.25 퍼센트.

    움직임, which was an attempt to try to cool the rampant inflation rate, came a day after data showed CPI had unexpectedly surged to a 10-year high in November.

    Inflation is also turning into a political problem for Boris Johnson, who is facing calls to offset an expected 50 per cent rise in regulated household energy prices in April.

    Th ONS data showed that December’s increase reflected rising food prices and the higher cost of clothing and furniture. This graph shows contributions to the CPIH 12-month inflation rate

    Th ONS data showed that December’s increase reflected rising food prices and the higher cost of clothing and furniture. This graph shows contributions to the CPIH 12-month inflation rate

    Food and drink made the largest contribution to the change in the CPIH annual inflation rate

    Food and drink made the largest contribution to the change in the CPIH annual inflation rate

    Responding to the rise in CPI inflation, Chancellor Rishi Sunak said today: ‘I understand the pressures people are facing with the cost of living and we will continue to listen to people’s concerns as we have done throughout the pandemic.

    Black Wednesday and 15% interest rates: What happened in 1992?

    The Consumer Prices Index rate was at 5.4 per cent in December 2021 – the highest level since March 1992, when it stood at 7.1 퍼센트.

    This period followed the UK recession of 1991 which was caused by a toxic combination of high interest rates, plunging house prices and an overvalued exchange rate.

    Chancellor Norman Lamont speaks about Britain leaving the Exchange Rate Mechanism on Black Wednesday in 1992

    Chancellor Norman Lamont speaks about Britain leaving the Exchange Rate Mechanism on Black Wednesday in 1992

    The most famous point was Black Wednesday on September 16, 1992, when the UK left the Exchange Rate Mechanism (ERM) and the pound devalued by a whopping 20 퍼센트 – showing how much it was overvalued.

    The period followed the economic boom in the late 1980s which saw big economic growth, a rapid increase in house prices and rising inflation amid a time of high consumer confidence.

    The Government increased interest rates to as high as 15 per cent in September 1996

    The Government increased interest rates to as high as 15 per cent in September 1996

    The Government joined the ERM in 1990 with the intention of getting inflation back under control, but the economy then began to slow down and it became difficult to keep the pound at its exchange rate target against the Deutsche Mark.

    To keep the value up, the Government used foreign currency reserves to buy sterling and increase interest rates to as high as 15 퍼센트 – but this was unsustainable and it had to leave the EMR and devalue the currency.

    There was a fall in house prices because many people could not afford soaring mortgage payments, which also then reduced household wealth and consumer confidence plunged.

    Unemployment rose to over 10 퍼센트 1992, while house prices were falling at a rate of 10 퍼센트 1990 as home repossession rates went up.

    광고

    ‘We’re providing support worth around £12billion this financial year and next to help families with the cost of living.

    ‘We’re cutting the Universal Credit taper to make sure work pays, freezing alcohol and fuel duties to keep costs down, and providing targeted support to help households with their energy bills.

    The Bank forecasts CPI will peak at a 30-year high of around 6 per cent in April due to the higher energy bills, and that it will take more than two years for CPI to return to its 2 per cent target.

    Financial markets see a high chance that the Bank of England will raise rates again on February 3 and announce that it will allow its £875billion stock of government bonds to fall as the gilts begin to mature.

    Armed Forces minister James Heappey said the Government is looking at what more can be done to help households with the cost of living crisis.

    He told BBC Breakfast that the rise in inflation was ‘a cause for real concern’, 첨가: ‘The Government is looking at what more could and should be done.

    ‘I don’t know that viewers are necessarily learning anything new this morning because they would have seen the cost of their bills increasing over the course of the last few months.

    ‘But it is a headline that reminds all of us in Government that there are millions of people out there who are concerned about their ability to heat their home, feed their families.

    ‘That’s why the Chancellor and the Business Secretary and the Prime Minister are looking at what the Government could and should be doing to help them.

    Shadow business secretary Jonathan Reynolds told BBC Radio 4’s Today programme this morning that there is a ‘triple whammyfacing families.

    그는 말했다: ‘You’ve got real wages and incomes, even for pensioners, falling because of inflation. You’ve got substantial tax rises. You’ve got huge rises in energy bills.

    ‘It is our job to hold the Government to account and that it exactly what we’re doing, and we’re laying out serious costed alternative positions to take that would make a real difference to people’s incomes.

    '다시, I think that is in a very positive contrast to a Government which doesn’t seem to be able to do anything other than try and defend itself.

    Grant Fitzner, chief economist at the ONS, 오늘 말했다: ‘The inflation rate rose again at the end of the year and has not been higher for almost 30 연령.

    ‘Food prices again grew strongly while increases in furniture and clothing also pushed up annual inflation.

    ‘These large rises were slightly offset by petrol prices, which despite being at record levels were stable this month, but rose this time last year.

    ‘The closures in the economy last year have impacted some items but, overall, this effect on the headline rate of inflation is negligible.

    Today’s figures showed that core CPIwhich excludes sometimes-volatile food, 에너지, alcohol and tobacco pricesrose to a record high 4.2 per cent in December from November’s 3.9 퍼센트.

    Retail price inflationan older measure that the ONS says is no longer accurate, but which is still widely used by government and businessesrose to 7.5 per cent in December from a 30-year high of 7.1 per cent in November.

    The data also revealed an unseasonal increase of 0.7 per cent for clothing and footwear prices

    The data also revealed an unseasonal increase of 0.7 per cent for clothing and footwear prices

    The contribution of housing and household services' to the CPIH was at its highest since 2009

    The contribution of housing and household servicesto the CPIH was at its highest since 2009

    And the British Chambers of Commerce warned today that inflation will continue to soar in the coming months and could surpass the 6 per cent mark by April.

    Suren Thiru, head of economics at the BCC, '솔직한: ‘Higher inflation is adding to the unprecedented surge in costs facing businesses.

    ‘The cumulative effect of soaring energy bills, increasing input costs and a looming National Insurance hike means that firms are under mounting pressure to continue raising prices.

    ‘Inflation will continue to soar in the coming months as surging energy prices, rising raw material costs and the reversal of the VAT reductions for hospitality push it well above 6 per cent by April.

    She added that the surging inflation means a February interest rate rise ‘may be inevitable’, but ‘raising rates too aggressively risks undermining confidence and will do little to dampen the global factors driving this current inflationary spike’.

    Boris Johnson during a visit to the Finchley Memorial Hospital in North London yesterday

    Boris Johnson during a visit to the Finchley Memorial Hospital in North London yesterday








    The ONS said food and drink prices lifted by 4.2 per cent year on year in December, which is the biggest rise since September 2013.

    Clothes shops also put up prices by an average 4.2 퍼센트.

    But the biggest hit to consumer pockets continues to be the rises in energy bills after an October increase to the price cap, with experts warning over a leap of more than 50 per cent in these costs when the next revision is due in April.

    그 동안에, motorists have also faced painful fuel price rises, and the ONS said average petrol prices remained at a record high of 145.8 pence a litre last month, COVID에 대한 Noem의 정책은 손을 떼었습니다. 114.1 pence a litre a year earlier.

    Rising used car prices have been another factor in pushing up CPI since the beginning of 2020, ONS에 따라.

    Chancellor Rishi Sunak, pictured last October, said he 'understands the pressures people are facing with the cost of living'

    Chancellor Rishi Sunak, pictured last October, said he ‘understands the pressures people are facing with the cost of living

    The figures showed that CPIH, which includes owner-occupiershousing costs and is the ONS’s preferred measure of inflation, 였다 4.8 per cent in December compared with 4.6 per cent in November and the highest since September 2008.

    Samuel Tombs, at Pantheon Macroeconomics, said December’s inflation figures leave the Bank of England with ‘little choice but to hike rates again in February’.

    He said CPI is likely to peak ‘slightly above’ 6 [object Window].

    '그럼에도 불구하고, we continue to expect CPI inflation to fall back swiftly after April and ultimately to undershoot the (Bank’s) 2 per cent target in 2023,’ 그는 덧붙였다.