Britain annual inflation jumped to 9 percent Last month, it was the highest in 40 years, the National Bureau of Statistics said on Wednesday.
The annual change in the consumer price index rose from 7 percent in March. The British were ready for a sharp rise in inflation in April after a reboot in government restriction on gas and electricity bills. This price cap, which is designed to protect about 22 million households, rose 54 percent, reflecting a rise in wholesale natural gas prices late last year.
About three-quarters of the increase in annual inflation in April was due to a jump in utility bills, according to statistical economist Grant Fitzner.
Prices have also boosted growth in restaurants after the VAT cut, a type of sales tax, expired during the pandemic era. Food prices have also been growing faster than last year.
Although a sharp rise in inflation was expected, the pain of such high inflation will be felt as rising prices outpace wage growth and increase pressure on the government to support low-income people cost of living.
Inflation is unlikely to have peaked. Economists expect another sharp rise in the energy price limit, when it will be dropped again in October and will reflect rising energy prices after Russia’s invasion of Ukraine. The Bank of England predicts that inflation in Britain will be peak above 10 percent in the last quarter of the year.