Consumer prices in the United Kingdom rose 10.1 percent in July compared to the same month last year, the ONS reported on Wednesday. According to the ONS, the rise was due to food prices and the cost of items such as toilet paper, deodorant and toothbrushes. This again underlines that rising inflation is no longer due to expensive energy alone.
ING economist James Smith said he expects cheaper fuel to “provide some respite” next month, but that it will be “only temporary.” Smith points out that British households can expect a 75 per cent increase in energy bills in October. Inflation is expected to rise to 13.3 percent.
This is the highest rate of inflation in Britain since February 1982. Analysts had ‘only’ expected an inflation rate of 9.4 to 9.8 per cent. Inflation was still 9.4 percent in June.
High inflation rates will only add pressure on the British government and the Conservatives’ leadership candidates. The opposition accuses leading contenders Liz Truss and Rishi Sunak of “not adequately understanding the scale of the emergency”. (Belga, PVM)
