Official statistics indicated that annual inflation in the United Kingdom has reached a new 40-year high, further eroding workers’ salaries in a Cost-of-Living (CoL) crisis and putting more pressure on the Bank of England to maintain raising interest rates.
According to the Office for National Statistics (ONS), the inflation rate increased to 9.1 percent in May from 9.0 percent in April, maintaining at its highest level since 1982.
According to the Bank of England, UK inflation will reach 11% by the end of the year, fuelled by skyrocketing energy costs that have increased the threat of a worldwide recession. In Britain and countries, decades of excessive inflation are generating a cost-of-living catastrophe.
As rising costs undercut the value of pay, UK railway workers are waging the sector’s largest strike action in more than 30 years this week.
According to ONS chief economist Grant Fitzner, inflation rose in May due to “continuing sharp food price hikes and record high gas costs.”
He said that this was mitigated by apparel expenses growing by less than a year earlier and computer game prices falling.
“The latest rise in Consumer Prices Index inflation to 9.1 percent highlights the serious strain that firms and people are experiencing,” said David Bharier, head of research at the British Chambers of Commerce.