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Updated May 18th, 2022 at 19:34 IST

UK inflation hits 40-year high due to Russia's war in Ukraine

"Russia’s invasion of Ukraine has put further pressure on food and energy prices," the UK's Office for National Statistics said in a report.

Reported by: Zaini Majeed
UK
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UK's inflation rate has risen to the highest level in 40 years last month due to the critical food shortage fuelled by Russia's war in Ukraine. The Consumer price inflation accelerated to 9% in the last 12 months through April, up from 7% the previous month, a survey published by UK's Office for National Statistics on Wednesday revealed. This is the highest rate since 1982 when inflation reached 11%, the firm's statistical analysis has found. 

British Prime Minister Boris Johnson had warned that the Ukraine crisis would grow into “the most dangerous moment” for Europe in decades. The war in Ukraine has pushed Britain to mitigate a cost-of-living crisis. Economists forecast on Tuesday predicted that the inflation will result in the biggest drop in living standards since the 1950s across the UK. 

Credit: Office for National Statistics – Consumer price inflation

UK suffers nearly 54% price hike in gas

UK's households have suffered a nearly 54% price hike in gas and electricity bills last month. This occurred as energy providers boosted the energy price cap to reflect increases in wholesale prices. "Russia’s invasion of Ukraine has put further pressure on food and energy prices," the UK's Office for National Statistics said in a report. UK's average house prices meanwhile also increased by 9.8% over the year to March 2022. Consumer Prices Index including owner occupiers' housing costs (CPIH) rose by 7.8% in the 12 months to April 2022, up from 6.2% in March.

Credit: Office for National Statistics – Consumer price inflation

UK government plans to slash the income taxes and is drafting an action plan to boost subsidies for low-income people across the country, as food, energy and basic commidities prices rise significantly due to the war in Ukraine. The britons have been struggling to pay their fuel bills, according to the British media reports published Wednesday. Boris Johnson administration is planning a taxation on profits of energy companies to control the rising inflation and reduce the prices of the oil and gas across the UK. Apart from the UK, the United States is also reporting a near four-decade high rate of 8.3% last month. As countries worldwide witness soaring consumer prices, the governments have scrambled to control the price hike by raising interest rates. The US Federal Reserve raised its key rate for the first time since 2000 in the month of May. 

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Published May 18th, 2022 at 19:34 IST

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