The Office for National Statistics announced that consumer prices were 10.4 percent higher in February than a year earlier. In January inflation was still 10.1 percent and analysts had expected it to fall below 10 percent in February. In the past month, eating out, and food in particular, has become more expensive in the UK.
As a result, the purchasing power of the British will come under more pressure, because wages in the UK are rising much less quickly. Rising inflation is also a setback for Chancellor of the Exchequer Jeremy Hunt. He wants inflation to more than halve this year, reduce the national debt and allow the economy to grow again. Hunt predicted earlier this month that UK inflation will be less than 3 per cent by the end of this year.
Due to high inflation, which is also higher in the UK than in many other countries, many Britons have ended up in financial trouble. Therefore, there have been regular strikes in the country for months by all kinds of professional groups who want a higher salary.
On Thursday, the Bank of England will announce whether it will raise interest rates again to curb inflation. This will be the eleventh consecutive rate hike.
