In the United Kingdom, inflation reached double digits in September, putting additional pressure on the government and central bank to rein in soaring commodity prices.
London: In the United Kingdom, inflation reached double digits in September, putting additional pressure on the government and central bank to rein in soaring commodity prices.
The Consumer Prices Index touched 10.1% last month, which was a one-digit 9.9% the month before, the Office for National Statistics said on Wednesday That beat experts’ projections by 10%.
The numbers show that inflation is much higher than the Bank of England’s 2% target, which puts additional pressure on decision-makers to sharply raise the key rate next month. The risk is that prices may spike once more early next year after the government loosens its support for household energy bills.
The Prime Minister, Liz Truss’ government, has seen a decline in poll ratings as a result of the soaring prices and the lower purchasing power of people in decades. A market crash abandoned several of the policies she had implemented, including hefty tax cuts and relief for household energy bills, which left the question of how ministers would respond.
The Labour opposition has been blaming the government for soaring prices. Rachel Reeves, the Labour member of Parliament who shadows Hunt, said, “Inflation figures this morning have brought a lot of anxiety to families worried about the Tories’ lack of grip on an economic crisis of their own making.”
The value of the pound dropped as much as 0.3% on the day to $1.1286.
UK inflation may peak at around 10.7% this year but surge to 12% in April if the government doesn’t manage to control in increasing energy costs.