<p>The inflation rate in the United Kingdom hit a fresh 41-year high in October, increasing to 11.1 per cent amid cost of living crisis stoked by rising energy and food prices, in part due to the ongoing war in Ukraine. On an annual basis, food price inflation rose sharply to 16.5 per cent on an annual basis, the highest in&nbsp;45 years, the UK Office of National Statistics said.</p>

<p>The UK's rate of inflation was 10.1 per cent in September. With an 11.1 per cent inflation rate in October, Prime Minister Rishi Sunak-led UK is facing the highest level of inflation since October 1981.&nbsp;</p>

<p><strong>WATCH |&nbsp;<a href="https://www.wionews.com/videos/britain-to-see-80-spike-in-energy-bills-cost-of-living-crisis-deepens-510439">Britain to see 80% spike in energy bills, cost of living crisis deepens</a></strong></p>

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<p>For a household with average usage of both gas and electricity, the government in October had capped the bills at £2,500 per month. According to the UK's Office of National Statistics, gas prices have climbed by nearly 130 per cent while electricity prices have risen by close to 66 per cent over the past year.&nbsp;</p>

<p><strong>ALSO READ | <a href="https://www.wionews.com/world/uk-high-inflation-casts-shadow-on-fastest-rise-in-wages-in-20-years-534384">UK: High inflation casts shadow on fastest rise in wages in 20 years</a></strong></p>

<p>However, the UK core inflation, excluding food and energy costs, remained at 6.5 per cent in October.</p>

<p>Meanwhile, the British&nbsp;Chancellor of the Exchequer Jeremy Hunt promised to take "tough but necessary decisions on tax and spending" in the Autumn Statement to help bring inflation down. The autumn statement is scheduled to be laid out on November 17.&nbsp;</p>

<p>"We cannot have long-term, sustainable growth with high inflation. Tomorrow, I will set out a plan to get debt falling, deliver stability and drive down inflation while protecting the most vulnerable," Hunt said in a statement on Wednesday.</p>

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The inflation rate in the United Kingdom hit a fresh 41-year high in October, increasing to 11.1 per cent amid cost of living crisis stoked by rising energy and food prices, in part due to the ongoing war in Ukraine.

The inflation rate in the United Kingdom hit a fresh 41-year high in October, increasing to 11.1 per cent amid cost of living crisis stoked by rising energy and food prices, in part due to the ongoing war in Ukraine. On an annual basis, food price inflation rose sharply to 16.5 per cent on an annual basis, the highest in 45 years, the UK Office of National Statistics said. The UK's rate of inflation was 10.1 per cent in September. With an 11.1 per cent inflation rate in October, Prime Minister Rishi Sunak-led UK is facing the highest level of inflation since October 1981. WATCH | Britain to see 80% spike in energy bills, cost of living crisis deepens × For a household with average usage of both gas and electricity, the government in October had capped the bills at £2,500 per month. According to the UK's Office of National Statistics, gas prices have climbed by nearly 130 per cent while electricity prices have risen by close to 66 per cent over the past year. ALSO READ | UK: High inflation casts shadow on fastest rise in wages in 20 years However, the UK core inflation, excluding food and energy costs, remained at 6.5 per cent in October. Meanwhile, the British Chancellor of the Exchequer Jeremy Hunt promised to take "tough but necessary decisions on tax and spending" in the Autumn Statement to help bring inflation down. The autumn statement is scheduled to be laid out on November 17. "We cannot have long-term, sustainable growth with high inflation. Tomorrow, I will set out a plan to get debt falling, deliver stability and drive down inflation while protecting the most vulnerable," Hunt said in a statement on Wednesday. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

UK inflation soars to 41-year high before Jeremy Hunt's autumn statement

UK inflation hits 11.1% which is being driven by rising energy bills and food prices in a worsening cost of living crisis in the country. According to the office for National Statistics, the consumer price index hit 11.1% on an annual basis which is up from 10.1% in September.

UK inflation rises to 41-year high at 11.1%; food, energy prices soar

<p>In a sigh of relief for millions of British people and citizens in the rest of the United Kingdom, wages in the UK are rising at fastest in 20 years. However, it still lags behind the rate of rising cost of living.</p>

<p>The job vacancies in the UK are at record high whereas the unemployment is low. The employers are reportedly putting up more wages to brings the workers they need. In September, the wage growth was witnessed more in the private sector (6.6 per cent) as compared to the public sector (2.2 per cent). Except for the period of Covid-19 pandemic, this is the largest difference between public and private pay growths.</p>

<p>Regular pay rose by 5.7 per cent in the year to September, the fastest growth since 2000 except for the period of Covid-19 pandemic. When adjusted for the increased prices, the wages fell by 2.7 per cent.</p>

<p><strong>ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/amid-cost-of-living-crisis-bank-of-england-hikes-interest-rates-and-warns-uk-faces-two-year-recession-530999">Amid cost-of-living crisis, Bank of England hikes interest rates and warns UK faces two-year recession</a></strong></p>

<p>The cost of living crisis is putting 'more and more pressure on households', reports say. Energy and food prices have increased due to which millions in the UK are reportedly struggling to pay bills.</p>

<p><strong>Unemployment&nbsp;slightly up, may double by 2025</strong></p>

<p>The UK unemployment rate rose slightly to 3.6 per cent in the three months to September, up from 3.5 per cent&nbsp;in August, according to the official figures. The unemployment is likely to double by 2025, the Bank of England has warned.</p>

<p><strong>Jeremy Hunt to announce measures on November 17</strong></p>

<p>On Thursday, the Chancellor of Exchequer Jeremy Hunt will lay out his plans to revamp the British economy, with expected spending cuts and increase in taxes.</p>

<p>According to a report in The Times, Jeremy Hunt and UK Prime Minister Rishi Sunak will announce increase in the national living wage on Thursday, November 17. This increase will target the new cost-of-living payments for the poorest households.</p>

<p><strong>WATCH |&nbsp;<a href="https://www.wionews.com/videos/uk-cost-of-living-crisis-food-banks-lifesaver-britons-worried-about-winter-530363">UK Cost of Living Crisis: Food banks 'lifesaver', Britons worried about winter</a></strong></p>

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<p>"People's hard-earned money isn't going as far as it should," Jeremy Hunt said.&nbsp;</p>

<p>"Tackling inflation is my absolute priority and that guides the difficult decisions on tax and spending we will make on Thursday," he added.</p>

<p><strong>UK paying for "economic mistakes" of Conservatives: Opposition</strong></p>

<p>Labour Party's Rachel Reeves said that the UK was paying for "12 years of Tory economic mistakes".</p>

<p>"Real wages have fallen again, thousands of over-50s have left the labour market and a record number of people are out of work because they're stuck on NHS waiting lists or they're not getting proper employment support," Rachel Reeves said.</p>

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<p dir="ltr" lang="en">NEW: Real wages have fallen again.<br />
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This is the knock-on impact of 12 years of Tory economic failure.<br />
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Thousands of over 50s have left the labour market &amp; record numbers are out of work as they’re on NHS waiting lists.<br />
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Britain deserves fairer choices &amp; a proper plan for growth.</p>
— Rachel Reeves (@RachelReevesMP) <a href="https://twitter.com/RachelReevesMP/status/1592413595941277697?ref_src=twsrc%5Etfw">November 15, 2022</a></blockquote>
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<p>On Twitter, the Labour leader claimed that thousands of over 50s have left the labour market and record numbers are out of work as they’re on NHS waiting lists. "Britain deserves fairer choices and a proper plan for growth," she said.&nbsp;</p>

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In a sigh of relief for millions of British people and citizens in the rest of the United Kingdom, wages in the UK are rising at fastest in 20 years. However, it still lags behind the rate of rising cost of living.

In a sigh of relief for millions of British people and citizens in the rest of the United Kingdom, wages in the UK are rising at fastest in 20 years. However, it still lags behind the rate of rising cost of living. The job vacancies in the UK are at record high whereas the unemployment is low. The employers are reportedly putting up more wages to brings the workers they need. In September, the wage growth was witnessed more in the private sector (6.6 per cent) as compared to the public sector (2.2 per cent). Except for the period of Covid-19 pandemic, this is the largest difference between public and private pay growths. Regular pay rose by 5.7 per cent in the year to September, the fastest growth since 2000 except for the period of Covid-19 pandemic. When adjusted for the increased prices, the wages fell by 2.7 per cent. ALSO READ | Amid cost-of-living crisis, Bank of England hikes interest rates and warns UK faces two-year recession The cost of living crisis is putting 'more and more pressure on households', reports say. Energy and food prices have increased due to which millions in the UK are reportedly struggling to pay bills. Unemployment slightly up, may double by 2025 The UK unemployment rate rose slightly to 3.6 per cent in the three months to September, up from 3.5 per cent in August, according to the official figures. The unemployment is likely to double by 2025, the Bank of England has warned. Jeremy Hunt to announce measures on November 17 On Thursday, the Chancellor of Exchequer Jeremy Hunt will lay out his plans to revamp the British economy, with expected spending cuts and increase in taxes. According to a report in The Times, Jeremy Hunt and UK Prime Minister Rishi Sunak will announce increase in the national living wage on Thursday, November 17. This increase will target the new cost-of-living payments for the poorest households. WATCH | UK Cost of Living Crisis: Food banks 'lifesaver', Britons worried about winter × "People's hard-earned money isn't going as far as it should," Jeremy Hunt said. "Tackling inflation is my absolute priority and that guides the difficult decisions on tax and spending we will make on Thursday," he added. UK paying for "economic mistakes" of Conservatives: Opposition Labour Party's Rachel Reeves said that the UK was paying for "12 years of Tory economic mistakes". "Real wages have fallen again, thousands of over-50s have left the labour market and a record number of people are out of work because they're stuck on NHS waiting lists or they're not getting proper employment support," Rachel Reeves said. NEW: Real wages have fallen again. This is the knock-on impact of 12 years of Tory economic failure. Thousands of over 50s have left the labour market & record numbers are out of work as they’re on NHS waiting lists. Britain deserves fairer choices & a proper plan for growth. — Rachel Reeves (@RachelReevesMP) November 15, 2022 × On Twitter, the Labour leader claimed that thousands of over 50s have left the labour market and record numbers are out of work as they’re on NHS waiting lists. "Britain deserves fairer choices and a proper plan for growth," she said. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

UK: High inflation casts shadow on fastest rise in wages in 20 years

<p>The cost-of-living crisis in the United Kingdom is now threatening to stall government functioning as tens of thousands of civil servants on Thursday voted in favour of going on strike over pay, pensions and redundancy terms.&nbsp;The Public and Commercial Services (PCS) union, which represents workers employed by several British government departments, said an average of 86.2% of its balloted members voted for industrial action, the highest percentage ever in the union’s history, reports Reuters.</p>

<p>PCS general secretary Mark Serwotka said, “Our members have spoken and if the government fails to listen to them, we’ll have no option than to launch a prolonged programme of industrial action reaching into every corner of public life.”<br />
<br />
<strong>ALSO READ |&nbsp;<a href="https://www.wionews.com/videos/uk-nurses-to-hold-first-ever-strike-over-pay-threat-to-already-disrupted-health-system-533006">UK nurses to hold first ever strike over pay: Threat to already disrupted health system</a></strong><br />
<br />
The government must look at the huge vote for strike action across swathes of the civil service and realise it can no longer treat its workers with contempt, he added.<br />
<br />
“Civil servants have willingly and diligently played a vital role in keeping the country running during the pandemic but enough is enough,” Serwotka said.<br />
<br />
<strong>WATCH |&nbsp;UK inflation accelerates to 40-year-high</strong></p>

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<p><br />
The union officials are demanding a 10 per cent hike in pay to match the country’s high inflation rate.</p>

<p><strong>ALSO READ |&nbsp;<a href="https://www.wionews.com/world/millions-forced-to-skip-meals-for-an-entire-day-in-the-uk-new-study-shows-526574">Millions forced to skip meals for an entire day in the UK, new study shows</a></strong><br />
<br />
The cost-of-living crisis is leading to widespread strikes in the UK, with train workers, legal staff, dockers and even nurses among those opting for industrial action.</p>

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The cost-of-living crisis in the United Kingdom is now threatening to stall government functioning as tens of thousands of civil servants on Thursday voted in favour of going on strike over pay, pensions and redundancy terms.

The cost-of-living crisis in the United Kingdom is now threatening to stall government functioning as tens of thousands of civil servants on Thursday voted in favour of going on strike over pay, pensions and redundancy terms. The Public and Commercial Services (PCS) union, which represents workers employed by several British government departments, said an average of 86.2% of its balloted members voted for industrial action, the highest percentage ever in the union’s history, reports Reuters. PCS general secretary Mark Serwotka said, “Our members have spoken and if the government fails to listen to them, we’ll have no option than to launch a prolonged programme of industrial action reaching into every corner of public life.” ALSO READ | UK nurses to hold first ever strike over pay: Threat to already disrupted health system The government must look at the huge vote for strike action across swathes of the civil service and realise it can no longer treat its workers with contempt, he added. “Civil servants have willingly and diligently played a vital role in keeping the country running during the pandemic but enough is enough,” Serwotka said. WATCH | UK inflation accelerates to 40-year-high × The union officials are demanding a 10 per cent hike in pay to match the country’s high inflation rate. ALSO READ | Millions forced to skip meals for an entire day in the UK, new study shows The cost-of-living crisis is leading to widespread strikes in the UK, with train workers, legal staff, dockers and even nurses among those opting for industrial action. You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE

Now, UK civil servants to join strike over cost-of-living crisis, union seeks 10% pay hike

Here we bring you a quick round-up of all latest news, top headlines and international breakings from all across the globe, stay tuned with Gravitas for more!

Gravitas Global Headlines: Indian Rupee falls to record low | HSBC Ad faces flak

<p>British inflation rose to a 40-year high in September, rising above 10 per cent on soaring food prices, official data showed Wednesday. A cost-of-living crisis is currently gripping the country and people are being forced to cut down on basic consumptions.</p>

<p>The Consumer Prices Index accelerated to 10.1 per cent on an annual basis, up from 9.9 per cent in August, the Office for National Statistics said in a statement.</p>

<p>The September rate matched the level in July and is the highest in 40 years, also as a result of sky-high energy bills.</p>

<p>Also Read |&nbsp;<a href="https://www.wionews.com/world/liz-truss-declares-she-will-increase-corporation-tax-just-hours-after-sacking-her-finance-minister-525494">After sacking her finance minister, UK PM Liz Truss declares she will hike corporation tax</a></p>

<p>"I understand that families across the country are struggling with rising prices and higher energy bills," Britain's new finance minister Jeremy Hunt said in a separate statement.</p>

<p>"This government will prioritise help for the most vulnerable while delivering wider economic stability and driving long-term growth that will help everyone."</p>

<p>UK markets witnessed chaos after uncosted tax cuts were made by the government. Most of the measures of the "mini budget" have now been reversed, leaving Prime Minister Liz Truss red-faced. Questions began swirling over her future, but she apologised and said that she will lead UK into the next elections.</p>

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<p>&nbsp;</p>

<p>Following widespread criticism, Truss sacked Kwasi Kwarteng as chancellor after less than six weeks in the role.&nbsp;</p>

<p>Analysts said Wednesday's data would put pressure on the Bank of England to keep raising its main interest rate by sizeable amounts.</p>

<p>Capital Economics noted that the BoE could hike its rate by as much as one percentage point to 3.25 per cent at its next meeting in November.</p>

<p><em>(With inputs from agencies)</em></p>

<p>&nbsp;</p>

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British inflation rose to a 40-year high in September, rising above 10 per cent on soaring food prices, official data showed Wednesday. A cost-of-living crisis is currently gripping the country and people are being forced to cut down on basic consumptions.

British inflation rose to a 40-year high in September, rising above 10 per cent on soaring food prices, official data showed Wednesday. A cost-of-living crisis is currently gripping the country and people are being forced to cut down on basic consumptions. The Consumer Prices Index accelerated to 10.1 per cent on an annual basis, up from 9.9 per cent in August, the Office for National Statistics said in a statement. The September rate matched the level in July and is the highest in 40 years, also as a result of sky-high energy bills. Also Read | After sacking her finance minister, UK PM Liz Truss declares she will hike corporation tax "I understand that families across the country are struggling with rising prices and higher energy bills," Britain's new finance minister Jeremy Hunt said in a separate statement. "This government will prioritise help for the most vulnerable while delivering wider economic stability and driving long-term growth that will help everyone." UK markets witnessed chaos after uncosted tax cuts were made by the government. Most of the measures of the "mini budget" have now been reversed, leaving Prime Minister Liz Truss red-faced. Questions began swirling over her future, but she apologised and said that she will lead UK into the next elections. × Following widespread criticism, Truss sacked Kwasi Kwarteng as chancellor after less than six weeks in the role. Analysts said Wednesday's data would put pressure on the Bank of England to keep raising its main interest rate by sizeable amounts. Capital Economics noted that the BoE could hike its rate by as much as one percentage point to 3.25 per cent at its next meeting in November. (With inputs from agencies)

UK inflation accelerates to 40-year high as food prices soar further

Gravitas Global Headlines: Concerns rise over US economy | Liz Truss apologizes

<p>Food price inflation has rocketed past last month's 9.3 per cent to 10.6 per cent in the UK, driven by the war in Ukraine which has raised the prices of commodities like animal feed, fertiliser and vegetable oil. Overall shop price inflation accelerated to 5.7 per cent in September, up from 5.1 per cent in August as per British Retail Consortium-Nielson IQ index.</p>

<p>Fresh food products cost a record 12.1 per cent more than last year, up from 10.5 per cent in August. Inflation for cupboard staples, such as pasta and tinned tomatoes, reached a record 8.6 per cent, up from 7.8 per cent in the previous month. This was the fastest rate of increase ever recorded for the category.</p>

<p>Non-food inflation rose from 2.9 per cent in August to 3.3 per cent due to rising transport costs. Prices of fruits such as strawberries, blueberries and tomatoes fell owing to prolonged sunshine due to the summer drought.</p>

<p>Helen Dickinson, chief executive of the British Retail Consortium, was quoted by Sky News as saying, "Retailers are battling huge cost pressures from the weak pound, rising energy bills and global commodity prices, high transport costs, a tight labour market and the cumulative burden of government-imposed costs."</p>

<p><em>(With inputs from agencies)</em></p>

<p>&nbsp;</p>

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Food price inflation has rocketed past last month's 9.3 per cent to 10.6 per cent in the UK, driven by the war in Ukraine which has raised the prices of commodities like animal feed, fertiliser and vegetable oil.

Food price inflation has rocketed past last month's 9.3 per cent to 10.6 per cent in the UK, driven by the war in Ukraine which has raised the prices of commodities like animal feed, fertiliser and vegetable oil. Overall shop price inflation accelerated to 5.7 per cent in September, up from 5.1 per cent in August as per British Retail Consortium-Nielson IQ index. Fresh food products cost a record 12.1 per cent more than last year, up from 10.5 per cent in August. Inflation for cupboard staples, such as pasta and tinned tomatoes, reached a record 8.6 per cent, up from 7.8 per cent in the previous month. This was the fastest rate of increase ever recorded for the category. Non-food inflation rose from 2.9 per cent in August to 3.3 per cent due to rising transport costs. Prices of fruits such as strawberries, blueberries and tomatoes fell owing to prolonged sunshine due to the summer drought. Helen Dickinson, chief executive of the British Retail Consortium, was quoted by Sky News as saying, "Retailers are battling huge cost pressures from the weak pound, rising energy bills and global commodity prices, high transport costs, a tight labour market and the cumulative burden of government-imposed costs." (With inputs from agencies)

Data shows UK shoppers are paying record 10.6% more for food than a year ago

Next UK leader to inherit an economy in a bind

As UK is bearing the brunt of inflation, pubs across the country might be forced to close this winter due to soaring energy costs. Pub owners in UK are finding it difficult to run their businesses with energy costs up by as much as 300%.

Cost of living crisis: UK pubs fear closure over rising energy costs

Goldman Sachs, one of the leading US financial service companies has some grim analysis for the United Kingdom. The financial firm says inflation in the country could exceed to as much as 20 percent next year if oil prices fail to cool down.

UK Inflation could top 20% next year: Goldman Sachs

<p>It's beginning to seem as though nothing will be able to stop the British pound from reaching new lows.</p>

<p>The UK's economic problems are getting worse by the day, with predictions of inflation exceeding 18% next year and the likelihood that households everywhere may experience energy poverty this winter. Traders agree that in order to control pricing pressures, the Bank of England will be forced to plunge the country into a deep recession and result in massive job losses.</p>

<p>As per Bloomberg reports, It has enabled the pound to reach historic lows. The challenges facing the British <a href="https://www.wionews.com/world/bolsonaro-and-lula-attack-each-other-in-the-first-televised-debate-ahead-of-the-october-elections-510987">economy</a> and the future prime minister are highlighted by the currency's current price of $1.18, which is only 4 US cents above its lowest level since 1985 against the dollar.</p>

<p>“Is there more downside? Yes, absolutely,” said Geoff Yu, senior&nbsp;currency&nbsp;strategist at Bank of New York Mellon Corp. “Even if things improve, sterling can’t return to where it was in the past of $1.40 or $1.45. That’s going to be very hard&nbsp;to achieve.”</p>

<p><strong>Also read |</strong>&nbsp;<a href="https://www.wionews.com/world/french-lawmakers-lodge-complaint-against-uk-sewage-dump-in-shared-waters-510832">French lawmakers lodge complaint against UK over sewage dumping in shared waters</a></p>

<p>Higher rates should theoretically result in a stronger currency. It's the opposite, though, for the UK at the moment. Investors are of the opinion that additional<a href="https://www.wionews.com/videos/us-senator-fed-will-tip-us-into-recession-511041"> aggressive increases in borrowing costs,</a> which are necessary to reduce price growth, would worsen Britain's economic situation relative to that of the US and the euro area.</p>

<p>When the growth-inflation trade-off is this poor, Kit Juckes, chief currency strategist at Societe Generale SA in London, said that rates "aren't always going to be enough to support a currency."</p>

<p>Last month, UK inflation reached a 40-year high of 10.1% year-over-year, and Citigroup Inc. has predicted that it may reach 18% in January. This year, more than half of UK homes run the risk of falling into energy poverty.</p>

<p><strong>Also WATCH |&nbsp;Suzuki to set up new R&amp;D company in India</strong></p>

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It's beginning to seem as though nothing will be able to stop the British pound from reaching new lows. The UK's economic problems are getting worse by the day, with predictions of inflation exceeding 18% next year and the likelihood that households everywhere may experience energy poverty this winter.

It's beginning to seem as though nothing will be able to stop the British pound from reaching new lows. The UK's economic problems are getting worse by the day, with predictions of inflation exceeding 18% next year and the likelihood that households everywhere may experience energy poverty this winter. Traders agree that in order to control pricing pressures, the Bank of England will be forced to plunge the country into a deep recession and result in massive job losses. As per Bloomberg reports, It has enabled the pound to reach historic lows. The challenges facing the British economy and the future prime minister are highlighted by the currency's current price of $1.18, which is only 4 US cents above its lowest level since 1985 against the dollar. “Is there more downside? Yes, absolutely,” said Geoff Yu, senior currency strategist at Bank of New York Mellon Corp. “Even if things improve, sterling can’t return to where it was in the past of $1.40 or $1.45. That’s going to be very hard to achieve.” Also read | French lawmakers lodge complaint against UK over sewage dumping in shared waters Higher rates should theoretically result in a stronger currency. It's the opposite, though, for the UK at the moment. Investors are of the opinion that additional aggressive increases in borrowing costs, which are necessary to reduce price growth, would worsen Britain's economic situation relative to that of the US and the euro area. When the growth-inflation trade-off is this poor, Kit Juckes, chief currency strategist at Societe Generale SA in London, said that rates "aren't always going to be enough to support a currency." Last month, UK inflation reached a 40-year high of 10.1% year-over-year, and Citigroup Inc. has predicted that it may reach 18% in January. This year, more than half of UK homes run the risk of falling into energy poverty. Also WATCH | Suzuki to set up new R&D company in India

UK: Raging inflation pushes the Pound to a near 37-year low

<p>Investment bank Citi has warned that surging energy bills will drive UK inflation to over 18 per cent early next year.</p>

<p>Due to extremely painful rises in energy bills that will push the cost of living into the “stratosphere” CPI inflation will hit 18.6 per cent in January 2023, according to Citi.</p>

<p>While the price cap on energy bills across&nbsp;Britain is currently £1,971, it will jump to £5,816 in April next year.</p>

<p>''Our latest estimate, updated for the further 25 per cent and 7 per cent rally in UK gas and electricity prices last week, points to a further upside shift in UK inflation,'' Benjamin Nabarro, chief UK economist at Citi, told clients.</p>

<p>''Accounting for these developments, as well as updating our own weights for CPI/ RPI and honing our own accounting for curve backwardation, we now expect CPI inflation to peak at over 18 per cent in January. RPI inflation, we think, will peak at over 20 per cent,'' he added.</p>

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<p>At a 40-year high, CPI inflation jumped to 10.1 per cent in July and the question now is what policy may do to offset the impact on both inflation and the real economy.</p>

<p>''For now, we think [Liz] Truss’s comments point to only a limited offset for headline inflation. Though the risks remain skewed towards further support,'' said Nabarro.</p>

<p>When the energy price cap is lifted, UK inflation will peak at over 13 per cent this autumn, according to a forecast by the Bank of England.</p>

<p>As Russian President Vladimir Putin ''weaponised'' Russia’s energy supplies, wholesale gas prices have continued to rise through August in Britain.</p>

<p>After Russian oil giant Gazprom announced it is preparing to shut down its Nord Stream 1 pipeline for three days, oil prices surged further.</p>

<p><em>(With inputs from agencies)</em></p>

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Investment bank Citi has warned that surging energy bills will drive UK inflation to over 18 per cent early next year. Due to extremely painful rises in energy bills that will push the cost of living into the “stratosphere” CPI inflation will hit 18.

Investment bank Citi has warned that surging energy bills will drive UK inflation to over 18 per cent early next year. Due to extremely painful rises in energy bills that will push the cost of living into the “stratosphere” CPI inflation will hit 18.6 per cent in January 2023, according to Citi. While the price cap on energy bills across Britain is currently £1,971, it will jump to £5,816 in April next year. ''Our latest estimate, updated for the further 25 per cent and 7 per cent rally in UK gas and electricity prices last week, points to a further upside shift in UK inflation,'' Benjamin Nabarro, chief UK economist at Citi, told clients. ''Accounting for these developments, as well as updating our own weights for CPI/ RPI and honing our own accounting for curve backwardation, we now expect CPI inflation to peak at over 18 per cent in January. RPI inflation, we think, will peak at over 20 per cent,'' he added. × At a 40-year high, CPI inflation jumped to 10.1 per cent in July and the question now is what policy may do to offset the impact on both inflation and the real economy. ''For now, we think [Liz] Truss’s comments point to only a limited offset for headline inflation. Though the risks remain skewed towards further support,'' said Nabarro. When the energy price cap is lifted, UK inflation will peak at over 13 per cent this autumn, according to a forecast by the Bank of England. As Russian President Vladimir Putin ''weaponised'' Russia’s energy supplies, wholesale gas prices have continued to rise through August in Britain. After Russian oil giant Gazprom announced it is preparing to shut down its Nord Stream 1 pipeline for three days, oil prices surged further. (With inputs from agencies) Watch WION's live TV here: ×

Citi warns UK inflation to hit 18% as energy bills rocket

<p>What a rollercoaster ride British citizens have been on since Brexit, COVID-19 and now the fatal energy blow being delivered to hardworking families in this country. From April this year electricity and gas tariffs have gone up by over 50 per cent&nbsp;on average, thanks in part to the price cap being removed by Ofgem and a free for all in a capitalist energy market. The working poor, pensioners, benefit claimants and ordinary folks will have to make a serious choice of whether to feed themselves and their families or heat their homes to keep everyone warm and comfortable. A disgrace for the United Kingdom as it belongs to the G7 club of rich nations.</p>

<p>While rising energy prices will affect most households across the country, they are more likely to disproportionately affect those on the lowest incomes. In the financial year ending in 2020, the poorest 10 per cent&nbsp;of households spent more than half (54 per cent) of their average weekly expenditure (£298.90) on essentials such as housing (including electricity and gas), food and transport. Those in the richest 10 per cent, in comparison, spend 42 per cent&nbsp;of their average weekly spend of £1,073.20 on the same essentials. As usual, during any economic crisis, it’s the working class that suffers the most and are often blamed, even though it’s the fault of our elected politicians and their lobbyist friends and donors.</p>

<p>A perfect storm is brewing for many households in Scotland as a decrease in wages, increase in high food prices, and from April a massive energy price hike. Rishi Sunak, ex-chancellor and now an aspiring prime minister, has not extended the £20 Universal Credit last year as that would have help cushioned the impact a little. The current rate of pay and benefits don’t fit well with a rich nation like the UK. Prepayment meters will see the highest price rise and they are mostly used by the poor and most vulnerable in our society. It beggars’ belief that the citizenry can be so easily misled and benefit claimants scapegoated again and again for the deals made by politicians to rob the taxpayers via their friends and families' companies which are setup simply to steal money officially through various tax havens.</p>

<p>Overall, considering predicted energy price increases alongside a reduction in real wages and the planned increase in national insurance contributions, the Resolution Foundation feared a “living standards catastrophe” in 2022. It is estimated that taxes and energy bills would have risen by an average of £1,200 per household since April 2022 under current government plans.</p>

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What a rollercoaster ride British citizens have been on since Brexit, COVID-19 and now the fatal energy blow being delivered to hardworking families in this country.

What a rollercoaster ride British citizens have been on since Brexit, COVID-19 and now the fatal energy blow being delivered to hardworking families in this country. From April this year electricity and gas tariffs have gone up by over 50 per cent on average, thanks in part to the price cap being removed by Ofgem and a free for all in a capitalist energy market. The working poor, pensioners, benefit claimants and ordinary folks will have to make a serious choice of whether to feed themselves and their families or heat their homes to keep everyone warm and comfortable. A disgrace for the United Kingdom as it belongs to the G7 club of rich nations. While rising energy prices will affect most households across the country, they are more likely to disproportionately affect those on the lowest incomes. In the financial year ending in 2020, the poorest 10 per cent of households spent more than half (54 per cent) of their average weekly expenditure (£298.90) on essentials such as housing (including electricity and gas), food and transport. Those in the richest 10 per cent, in comparison, spend 42 per cent of their average weekly spend of £1,073.20 on the same essentials. As usual, during any economic crisis, it’s the working class that suffers the most and are often blamed, even though it’s the fault of our elected politicians and their lobbyist friends and donors. A perfect storm is brewing for many households in Scotland as a decrease in wages, increase in high food prices, and from April a massive energy price hike. Rishi Sunak, ex-chancellor and now an aspiring prime minister, has not extended the £20 Universal Credit last year as that would have help cushioned the impact a little. The current rate of pay and benefits don’t fit well with a rich nation like the UK. Prepayment meters will see the highest price rise and they are mostly used by the poor and most vulnerable in our society. It beggars’ belief that the citizenry can be so easily misled and benefit claimants scapegoated again and again for the deals made by politicians to rob the taxpayers via their friends and families' companies which are setup simply to steal money officially through various tax havens. Overall, considering predicted energy price increases alongside a reduction in real wages and the planned increase in national insurance contributions, the Resolution Foundation feared a “living standards catastrophe” in 2022. It is estimated that taxes and energy bills would have risen by an average of £1,200 per household since April 2022 under current government plans. (Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer) WATCH WION LIVE HERE: ×

What is cost of living crisis in rich Britain?

<p>Soaring food prices pushed British consumer price inflation to a 40-year high of 9.1% last month, the highest rate out of the Group of Seven countries and one which underlines the severity of the country's cost-of-living crunch.</p>

<p>The reading was up from 9.0% in April and matched the consensus of a Reuters poll of economists. Records from the Office for National Statistics show May's inflation was the highest since March 1982 - and worse is likely to come.</p>

<p>Sterling, one of the weakest currencies against the U.S. dollar this year, fell below $1.22, down 0.6% on the day, before later recovering.</p>

<p>Some investors judge Britain to be at risk of both persistently high inflation and recession, reflecting its large, imported energy bill and ongoing Brexit-related friction which could further hurt trade ties with the European Union.</p>

<p>Also read |&nbsp;<a href="https://www.wionews.com/trending/man-releases-footage-of-flying-object-calls-british-town-ufo-hotspot-490584" hreflang="en">Man releases footage of 'flying object', calls British town 'UFO hotspot'</a></p>

<p>"With the economic outlook so unclear, no one knows how high inflation could go, and how long it will continue for - making fiscal and monetary policy judgements particularly tough," said Jack Leslie, senior economist at the Resolution Foundation think tank.</p>

<p>Earlier on Wednesday the Resolution Foundation said the cost-of-living hit for households was being compounded by Brexit, with damaging long-term implications for productivity and wages. read more</p>

<p>Average pay is not keeping up with inflation and trade unions have warned of widespread strikes in the coming months. Railway staff have already staged mass walkouts this week.</p>

<p>Britain's headline inflation rate in May was higher than in the United States, France, Germany and Italy. While Japan and Canada have yet to report consumer price data for May, neither are likely to come close.</p>

<p>A man shops for fruit and vegetables at Brixton Market, amid the spread of the coronavirus disease (COVID-19) in London, Britain, September 27, 2020. REUTERS/Simon Dawson</p>

<p>The Bank of England said last week that inflation was likely to remain above 9% over the coming months before peaking at slightly above 11% in October, when regulated household energy bills are due to rise again.</p>

<p>Financial markets show interest rates in Britain are on course to rise above 3% around the turn of the year from 1.25% now, although most economists think waning economic growth means the BoE will raise rates by less than that.</p>

<p>Finance minister Rishi Sunak said after the data that the British government was doing all it could to combat a surge in prices and the central bank would act "forcefully" to contain inflation.&nbsp;</p>

<p>Also read |&nbsp;<a href="https://www.wionews.com/south-asia/with-4-to-5-rape-cases-daily-pakistans-punjab-declares-rape-emergency-490546">With 4 to 5 rape cases daily, Pakistan's Punjab declares 'rape emergency'</a></p>

<p>Prices for food and non-alcoholic drinks rose by 8.7% in annual terms in May - the biggest jump since March 2009 and making this category the biggest driver of annual inflation last month.</p>

<p>Annual core inflation - which strips out food and energy prices to give an idea of domestically generated cost pressure - fell for the first time since September to 5.9% from 6.2%, a lower-than-expected reading.</p>

<p>"The Bank of England may indeed gain some hope from the fact that core price pressures are subsiding (but) we doubt this ... will be enough to avert further rate rises in the coming months," said Sandra Horsfield, an economist from Investec.</p>

<p>Overall consumer prices rose by 0.7% in monthly terms in May, the ONS said, a little more than the 0.6% consensus.</p>

<p>Costs paid by British factories for materials and energy - a key determinant of prices later paid by consumers in shops - were 22.1% higher in May than a year earlier, the biggest increase since these records began in 1985, the ONS said.</p>

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Soaring food prices pushed British consumer price inflation to a 40-year high of 9.1% last month, the highest rate out of the Group of Seven countries and one which underlines the severity of the country's cost-of-living crunch.

Soaring food prices pushed British consumer price inflation to a 40-year high of 9.1% last month, the highest rate out of the Group of Seven countries and one which underlines the severity of the country's cost-of-living crunch. The reading was up from 9.0% in April and matched the consensus of a Reuters poll of economists. Records from the Office for National Statistics show May's inflation was the highest since March 1982 - and worse is likely to come. Sterling, one of the weakest currencies against the U.S. dollar this year, fell below $1.22, down 0.6% on the day, before later recovering. Some investors judge Britain to be at risk of both persistently high inflation and recession, reflecting its large, imported energy bill and ongoing Brexit-related friction which could further hurt trade ties with the European Union. Also read | Man releases footage of 'flying object', calls British town 'UFO hotspot' "With the economic outlook so unclear, no one knows how high inflation could go, and how long it will continue for - making fiscal and monetary policy judgements particularly tough," said Jack Leslie, senior economist at the Resolution Foundation think tank. Earlier on Wednesday the Resolution Foundation said the cost-of-living hit for households was being compounded by Brexit, with damaging long-term implications for productivity and wages. read more Average pay is not keeping up with inflation and trade unions have warned of widespread strikes in the coming months. Railway staff have already staged mass walkouts this week. Britain's headline inflation rate in May was higher than in the United States, France, Germany and Italy. While Japan and Canada have yet to report consumer price data for May, neither are likely to come close. A man shops for fruit and vegetables at Brixton Market, amid the spread of the coronavirus disease (COVID-19) in London, Britain, September 27, 2020. REUTERS/Simon Dawson The Bank of England said last week that inflation was likely to remain above 9% over the coming months before peaking at slightly above 11% in October, when regulated household energy bills are due to rise again. Financial markets show interest rates in Britain are on course to rise above 3% around the turn of the year from 1.25% now, although most economists think waning economic growth means the BoE will raise rates by less than that. Finance minister Rishi Sunak said after the data that the British government was doing all it could to combat a surge in prices and the central bank would act "forcefully" to contain inflation. Also read | With 4 to 5 rape cases daily, Pakistan's Punjab declares 'rape emergency' Prices for food and non-alcoholic drinks rose by 8.7% in annual terms in May - the biggest jump since March 2009 and making this category the biggest driver of annual inflation last month. Annual core inflation - which strips out food and energy prices to give an idea of domestically generated cost pressure - fell for the first time since September to 5.9% from 6.2%, a lower-than-expected reading. "The Bank of England may indeed gain some hope from the fact that core price pressures are subsiding (but) we doubt this ... will be enough to avert further rate rises in the coming months," said Sandra Horsfield, an economist from Investec. Overall consumer prices rose by 0.7% in monthly terms in May, the ONS said, a little more than the 0.6% consensus. Costs paid by British factories for materials and energy - a key determinant of prices later paid by consumers in shops - were 22.1% higher in May than a year earlier, the biggest increase since these records began in 1985, the ONS said. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

UK inflation hits 9.1% as prices continue to rise at their fastest rate for 40 years

<p>Average British workers’ wages will be down, productivity will be hit, and UK’s competitive edge will be lost during the rest of the decade due to Brexit, a new study has claimed.</p>

<p>The Resolution Foundation think tank’s report, in collaboration with the London School of Economics, has said that splitting away from the EU would make Britain “poorer” during the 2020s and accentuate the cost of living crisis.</p>

<p>The study said that the immediate impact of Brexit was already clear, with a “depreciation-driven inflation spike” increasing the cost of living for households and cutting investment.</p>

<p>“A less open Great Britain is expected to be poorer and less productive,” it said, according to The Guardian.</p>

<p>The study estimated that UK’s labour productivity will dwindle by 1.3 per cent by the end of the decade through changes in trading rules, contributing to weaker wage growth.</p>

<p>They said that real pay was set to be £470 lower per worker each year, on average, if Britain goes ahead with its Brexit plan.</p>

<p>It further said that the region would see a 2.7 per cent fall in manufacturing output by 2030 compared with a scenario in which the UK voted to remain in the EU in 2016.</p>

<p>The report also added that the northeast of England is expected to be hit hardest by Brexit, since its firms are particularly reliant on exports to the EU.</p>

<p>The report is authored by LSE academic Swati Dhingra, an outspoken Brexit critic picked by chancellor Rishi Sunak to sit on the Bank of England’s interest-rate setting monetary policy committee from August.</p>

<p>(With inputs from agencies)</p>

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Average British workers’ wages will be down, productivity will be hit, and UK’s competitive edge will be lost during the rest of the decade due to Brexit, a new study has claimed.

Average British workers’ wages will be down, productivity will be hit, and UK’s competitive edge will be lost during the rest of the decade due to Brexit, a new study has claimed. The Resolution Foundation think tank’s report, in collaboration with the London School of Economics, has said that splitting away from the EU would make Britain “poorer” during the 2020s and accentuate the cost of living crisis. The study said that the immediate impact of Brexit was already clear, with a “depreciation-driven inflation spike” increasing the cost of living for households and cutting investment. “A less open Great Britain is expected to be poorer and less productive,” it said, according to The Guardian. The study estimated that UK’s labour productivity will dwindle by 1.3 per cent by the end of the decade through changes in trading rules, contributing to weaker wage growth. They said that real pay was set to be £470 lower per worker each year, on average, if Britain goes ahead with its Brexit plan. It further said that the region would see a 2.7 per cent fall in manufacturing output by 2030 compared with a scenario in which the UK voted to remain in the EU in 2016. The report also added that the northeast of England is expected to be hit hardest by Brexit, since its firms are particularly reliant on exports to the EU. The report is authored by LSE academic Swati Dhingra, an outspoken Brexit critic picked by chancellor Rishi Sunak to sit on the Bank of England’s interest-rate setting monetary policy committee from August. (With inputs from agencies) WATCH WION LIVE HERE

Brexit will make UK poorer by 2030, wages will see a massive drop, claims study

<p>A day after the Federal Reserve hiked interest rates to a historic high, US stocks plunged as more central banks around the world hiked interest rates to curb inflation.</p>

<p>The Dow Jones Industrial Average sank over 741 points to end 2.4 points down at 29,927.07 closing below the 30k mark for the first time since January 2021.</p>

<p><a href="https://www.wionews.com/business-economy/us-federal-reserve-announces-historic-interest-rate-hike-wall-street-stocks-surge-488585">Also Read:&nbsp;US Federal Reserve announces historic interest rate hike; Wall Street stocks surge</a></p>

<p>The S&amp;P 500 also dived falling 3.3 per cent to close at 3,666.78 and Nasdaq fell &nbsp;4.1 per cent to 10,646.10. The US Federal Reserve on Thursday had announced 75 basis point rate hike which was the highest since 1994.</p>

<p><strong>Watch:&nbsp;US Fed announces highest interest hike since 1994</strong></p>

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<p>However, central banks in UK and Switzerland also hiked rates to curb rising inflation reigniting recession fears. The Swiss National Bank raised interest rates by 50 basis points for the first time in 15 years and the Bank of England raised rates for the&nbsp;fifth time since December by 25 basis points.</p>

<p>UK is currently battling the highest inflation in the last 40 years at nine per cent as the markets in the UK continued to be nervous with London's benchmark FTSE 100 index closing 3.1 per cent down.</p>

<p>The Bank of England indicated that the UK economy will contract &nbsp;0.3 per cent in the second quarter after showing growth in the first quarter.</p>

<p>(With inputs from Agencies)</p>

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A day after the Federal Reserve hiked interest rates to a historic high, US stocks plunged as more central banks around the world hiked interest rates to curb inflation.

A day after the Federal Reserve hiked interest rates to a historic high, US stocks plunged as more central banks around the world hiked interest rates to curb inflation. The Dow Jones Industrial Average sank over 741 points to end 2.4 points down at 29,927.07 closing below the 30k mark for the first time since January 2021. Also Read: US Federal Reserve announces historic interest rate hike; Wall Street stocks surge The S&P 500 also dived falling 3.3 per cent to close at 3,666.78 and Nasdaq fell 4.1 per cent to 10,646.10. The US Federal Reserve on Thursday had announced 75 basis point rate hike which was the highest since 1994. Watch: US Fed announces highest interest hike since 1994 However, central banks in UK and Switzerland also hiked rates to curb rising inflation reigniting recession fears. The Swiss National Bank raised interest rates by 50 basis points for the first time in 15 years and the Bank of England raised rates for the fifth time since December by 25 basis points. UK is currently battling the highest inflation in the last 40 years at nine per cent as the markets in the UK continued to be nervous with London's benchmark FTSE 100 index closing 3.1 per cent down. The Bank of England indicated that the UK economy will contract 0.3 per cent in the second quarter after showing growth in the first quarter. (With inputs from Agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Day after Fed rate hike, US stocks plunge amid recession fears

<p>The largest trade union in the United Kingdom has warned that healthcare staff in the country is calling in sick to work as they cannot afford to cars with petrol.</p>

<p>“[Petrol price rises are] having a big impact on people with jobs that mean they have to travel. So community health workers, health visitors, care workers, social workers … are saying they just cannot afford to do their jobs any more,” said Christina McAnea, general secretary of the public services union Unison, told 'The Guardian'.</p>

<p>“We’re actually hearing of people who would rather phone in sick because they don’t have the money to fill up their cars and do their jobs. And more and more people are leaving public services, even in local government. There’s huge vacancies across local government.”</p>

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<p>With the cost of a tank of fuel hitting a record £100 due to Russia's invasion of Ukraine, British Prime Minister Boris Johnson said the UK's economy is “steering into the wind”.</p>

<p>According to McAnea, ''We don’t want to bring low-paid workers out on strike. But if there’s no alternative, what else can people do?''</p>

<p>“If we’ve got a government where they are getting 2-3 per cent&nbsp;pay increases and we’ve got inflation running at 10% or even more by the end of the year and they already pay a disproportionate amount of their income on fuel, housing, energy and food costs, if you are low paid worker … that has a huge impact on people.”</p>

<p>British Chancellor of the Exchequer Rishi Sunak is facing criticism due to mounting cost of living and inflation after analysts warned of a “wage-price spiral”.</p>

<p>“We don’t want to inconvenience people and we know that has a huge impact on people. But there comes a point where there’s no alternative,” McAnea said.&nbsp;</p>

<p>“The same thing could happen in England and Wales. I’m not saying there will be strikes tomorrow, but there’s a lot of anger out there, and people become more desperate,” she added.</p>

<p><em>(With inputs from agencies)</em></p>

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The largest trade union in the United Kingdom has warned that healthcare staff in the country is calling in sick to work as they cannot afford to cars with petrol.

The largest trade union in the United Kingdom has warned that healthcare staff in the country is calling in sick to work as they cannot afford to cars with petrol. “[Petrol price rises are] having a big impact on people with jobs that mean they have to travel. So community health workers, health visitors, care workers, social workers … are saying they just cannot afford to do their jobs any more,” said Christina McAnea, general secretary of the public services union Unison, told 'The Guardian'. “We’re actually hearing of people who would rather phone in sick because they don’t have the money to fill up their cars and do their jobs. And more and more people are leaving public services, even in local government. There’s huge vacancies across local government.” With the cost of a tank of fuel hitting a record £100 due to Russia's invasion of Ukraine, British Prime Minister Boris Johnson said the UK's economy is “steering into the wind”. According to McAnea, ''We don’t want to bring low-paid workers out on strike. But if there’s no alternative, what else can people do?'' “If we’ve got a government where they are getting 2-3 per cent pay increases and we’ve got inflation running at 10% or even more by the end of the year and they already pay a disproportionate amount of their income on fuel, housing, energy and food costs, if you are low paid worker … that has a huge impact on people.” British Chancellor of the Exchequer Rishi Sunak is facing criticism due to mounting cost of living and inflation after analysts warned of a “wage-price spiral”. “We don’t want to inconvenience people and we know that has a huge impact on people. But there comes a point where there’s no alternative,” McAnea said. “The same thing could happen in England and Wales. I’m not saying there will be strikes tomorrow, but there’s a lot of anger out there, and people become more desperate,” she added. (With inputs from agencies) Watch WION's live TV here: ×

UK's largest trade union warns healthcare staff calling in sick as they cannot afford to fill cars with petrol

<p>United Kingdom Prime Minister Boris Johnson is under fire amid a rise in prices as official data showed on Wednesday (May 18) that the inflation rate in the country has surged to a 40-year high on soaring energy costs.&nbsp;</p>

<p>UK's Office for National Statistics (ONS) noted that in the country, inflation jumped to 9 per cent in the 12 months to April, which is up from 7 per cent in March. Notably, April's figure marked the highest inflation rate since 1982.&nbsp;</p>

<p>The data has caused concerns and sparked calls for an emergency government budget in order to combat a worsening cost-of-living crisis in the country.&nbsp;</p>

<p>Amid the crisis, the new chief inspector of the constabulary stated that the cost of living crisis will trigger an increase in crime. He advised that the officers should use their "discretion" in case of punishing people who might steal to eat. &nbsp;</p>

<p>"The impact of poverty, and the impact of lack of opportunity for people, does lead to an increase in crime. There's no two ways about that," Andy Cooke said as quoted by The Guardian.&nbsp;</p>

<p>"What they've got to bear in mind is what is the best thing for the community, and that individual, in the way they deal with those issues. And I certainly fully support police officers using their discretion – and they need to use discretion more often," he added.&nbsp;</p>

<p><strong>A global issue?&nbsp;</strong></p>

<p>Apart from the UK, other economies are also struggling with inflation due to the ongoing Russia-Ukraine war and the lifting of coronavirus (COVID-19) lockdowns.&nbsp;</p>

<p>These factors have led to a rise in energy and food prices, forcing central banks including the Federal Reserve and Bank of England to hike interest rates.&nbsp;</p>

<p>Keir Starmer, the leader of the opposition labour party slammed the Johnson government and stated that the country's PM is "choosing to let people struggle".&nbsp;</p>

<p>Starmer said, "Whilst he dithers British households are slapped with an extra 53 million on their energy bills every single day. Meanwhile, every single day North Sea oil and gas giants rake in 32 million in unexpected profits."</p>

<p>"Doesn’t he see that every single day he delays his inevitable U-turn, he’s going to do it, he’s choosing to let people struggle when they don’t need to? Starmer added.&nbsp;</p>

<p>Amid the looming threat of recession, the main opposition Labour party demanded an emergency budget to help the common people. Labour finance spokeswoman Rachel Reeves said, "Our country faces a cost-of-living crisis and a growth crisis. We need an emergency budget now to tackle the cost of living crisis, and we need a real plan for growth."&nbsp;</p>

<p><strong>WATCH |&nbsp;Tory MP in police custody: Fresh scandal for Boris government</strong></p>

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<p><strong>Sunak blames the situation on 'global challenges'</strong></p>

<p>Meanwhile, finance minister Rishi Sunak insisted the state "cannot protect people completely". Sunak reacted after the alarming figures were released on Wednesday as he blamed the situation on "global challenges". He further noted that Britain was not alone in dealing with rocketing prices.&nbsp;</p>

<p>Speaking at the Confederation of British Industry (CBI) annual dinner, Sunak said "we have a collective responsibility to help the most vulnerable" and that "we stand ready to do more". However, he warned "the economic situation is extremely serious. The next few months will be tough".&nbsp;</p>

<p><em>(With inputs from agencies)</em></p>

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United Kingdom Prime Minister Boris Johnson is under fire amid a rise in prices as official data showed on Wednesday (May 18) that the inflation rate in the country has surged to a 40-year high on soaring energy costs.

United Kingdom Prime Minister Boris Johnson is under fire amid a rise in prices as official data showed on Wednesday (May 18) that the inflation rate in the country has surged to a 40-year high on soaring energy costs. UK's Office for National Statistics (ONS) noted that in the country, inflation jumped to 9 per cent in the 12 months to April, which is up from 7 per cent in March. Notably, April's figure marked the highest inflation rate since 1982. The data has caused concerns and sparked calls for an emergency government budget in order to combat a worsening cost-of-living crisis in the country. Amid the crisis, the new chief inspector of the constabulary stated that the cost of living crisis will trigger an increase in crime. He advised that the officers should use their "discretion" in case of punishing people who might steal to eat. "The impact of poverty, and the impact of lack of opportunity for people, does lead to an increase in crime. There's no two ways about that," Andy Cooke said as quoted by The Guardian. "What they've got to bear in mind is what is the best thing for the community, and that individual, in the way they deal with those issues. And I certainly fully support police officers using their discretion – and they need to use discretion more often," he added. A global issue? Apart from the UK, other economies are also struggling with inflation due to the ongoing Russia-Ukraine war and the lifting of coronavirus (COVID-19) lockdowns. These factors have led to a rise in energy and food prices, forcing central banks including the Federal Reserve and Bank of England to hike interest rates. Keir Starmer, the leader of the opposition labour party slammed the Johnson government and stated that the country's PM is "choosing to let people struggle". Starmer said, "Whilst he dithers British households are slapped with an extra 53 million on their energy bills every single day. Meanwhile, every single day North Sea oil and gas giants rake in 32 million in unexpected profits." "Doesn’t he see that every single day he delays his inevitable U-turn, he’s going to do it, he’s choosing to let people struggle when they don’t need to? Starmer added. Amid the looming threat of recession, the main opposition Labour party demanded an emergency budget to help the common people. Labour finance spokeswoman Rachel Reeves said, "Our country faces a cost-of-living crisis and a growth crisis. We need an emergency budget now to tackle the cost of living crisis, and we need a real plan for growth." WATCH | Tory MP in police custody: Fresh scandal for Boris government × Sunak blames the situation on 'global challenges' Meanwhile, finance minister Rishi Sunak insisted the state "cannot protect people completely". Sunak reacted after the alarming figures were released on Wednesday as he blamed the situation on "global challenges". He further noted that Britain was not alone in dealing with rocketing prices. Speaking at the Confederation of British Industry (CBI) annual dinner, Sunak said "we have a collective responsibility to help the most vulnerable" and that "we stand ready to do more". However, he warned "the economic situation is extremely serious. The next few months will be tough". (With inputs from agencies) WATCH WION LIVE HERE × You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Prime Minister Boris Johnson under fire as UK inflation rockets to 40-year high

UK inflation rose to its highest level since last 40 years, adding to pressure for action from the government and central bank. Consumer prices surged 9% in the year through April, the fastest rate since March 1982.

UK inflation rate surges to a 40-year high of 9%

<p>McColl's a British store chain with a network of more than 1,100 convenience stores and newsagents across the United Kingdom has gone bust in face of rising inflation. This has put 16000 jobs at risk.</p>

<p>The company is entering administration, a process in which a failing company seeks outside assistance in order to avoid job losses.</p>

<p>According to Reuters, the convenience store chain's lenders have declined to provide additional cash. Last-ditch talks with supermarket behemoth Morrisons, according to reports, have also failed.</p>

<p><strong>Also read |&nbsp;<a href="https://www.wionews.com/business-economy/us-fed-makes-biggest-rate-increase-since-2000-to-fight-inflation-476460" hreflang="en">US Fed makes biggest rate increase since 2000 to fight inflation</a></strong></p>

<p>"In order to protect creditors, preserve the future of the business and to protect the interests of employees, the board was regrettably... left with no choice other than to place the company in administration," said McColl's in its statement.</p>

<p>For the process, PricewaterhouseCoopers (PwC) has been appointed as administrators. The collapsing company said that it expects PwC to make a sale of the business to a third-party purchaser "as soon as possible".</p>

<p>In a trading update last month, McColl's said it was impacted by reduced customer spending and continued supply chain disruption throughout the industry.</p>

<p><strong>Watch | Bank Of England hikes interest rates to 13-year high</strong></p>

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<p>The London Stock Exchange (LSE) has also suspended the group's shares, whose price gained 20 per cent on Friday amid hopes of a rescue deal.</p>

<p>Britain is facing a cost-of-living crisis as inflation reaches 7 per cent, the highest in thirty years.</p>

<p>As per a warning by the Bank of England, by the end of this year, because of rising energy prices, UK's inflation is expected to reach 10 per cent, a four-decade high.</p>

<p><strong>Also read |&nbsp;<a href="https://www.wionews.com/world/random-guy-named-ma-gets-detained-alibaba-loses-usd-26-billion-476568" hreflang="en">Random guy named Ma gets detained, Alibaba loses USD 26 billion</a></strong></p>

<p>The bank also warned that Britain could enter a recession, as the central bank raised its main interest rate by a quarter-point to one per cent, the highest since the 2009 global financial crisis.</p>

<p>Globally consumer prices have been surging as economies that have already been struggling after pandemic lockdowns, face costs aggravated by the ongoing Russia-Ukraine war.</p>

<p><em>(With inputs from agencies)</em></p>


McColl's a British store chain with a network of more than 1,100 convenience stores and newsagents across the United Kingdom has gone bust in face of rising inflation.

McColl's a British store chain with a network of more than 1,100 convenience stores and newsagents across the United Kingdom has gone bust in face of rising inflation. This has put 16000 jobs at risk. The company is entering administration, a process in which a failing company seeks outside assistance in order to avoid job losses. According to Reuters, the convenience store chain's lenders have declined to provide additional cash. Last-ditch talks with supermarket behemoth Morrisons, according to reports, have also failed. Also read | US Fed makes biggest rate increase since 2000 to fight inflation "In order to protect creditors, preserve the future of the business and to protect the interests of employees, the board was regrettably... left with no choice other than to place the company in administration," said McColl's in its statement. For the process, PricewaterhouseCoopers (PwC) has been appointed as administrators. The collapsing company said that it expects PwC to make a sale of the business to a third-party purchaser "as soon as possible". In a trading update last month, McColl's said it was impacted by reduced customer spending and continued supply chain disruption throughout the industry. Watch | Bank Of England hikes interest rates to 13-year high The London Stock Exchange (LSE) has also suspended the group's shares, whose price gained 20 per cent on Friday amid hopes of a rescue deal. Britain is facing a cost-of-living crisis as inflation reaches 7 per cent, the highest in thirty years. As per a warning by the Bank of England, by the end of this year, because of rising energy prices, UK's inflation is expected to reach 10 per cent, a four-decade high. Also read | Random guy named Ma gets detained, Alibaba loses USD 26 billion The bank also warned that Britain could enter a recession, as the central bank raised its main interest rate by a quarter-point to one per cent, the highest since the 2009 global financial crisis. Globally consumer prices have been surging as economies that have already been struggling after pandemic lockdowns, face costs aggravated by the ongoing Russia-Ukraine war. (With inputs from agencies)

UK's convenience store chain McColl's goes bust due to inflation; 1,100 stores and 16,000 jobs at risk

<p data-changed="false" data-paragraphid="16">Higher energy costs, rising demand, and supply chain concerns drove up consumer prices in December, pushing the UK inflation rate to a 30-year high.</p>

<p data-changed="false" data-paragraphid="18">Inflation rose to 5.4 per cent on an annual basis, the highest level since March 1992, and up from 5.1 per cent in November, which was also a decade high.</p>

<p data-changed="false" data-paragraphid="19">Economists polled by Reuters had expected an increase of 5.2%.</p>

<p data-changed="false" data-paragraphid="20">Consumer prices increased 0.5 per cent on a monthly basis, exceeding economists' expectations of a 0.3 percent increase.</p>

<p data-changed="false" data-paragraphid="21">The rising cost of living has fueled speculation that the Bank of England will raise interest rates once more.</p>

<p data-changed="false" data-paragraphid="22">The Bank of England became the first major central bank to begin raising borrowing costs from pandemic-era lows in December.&nbsp;</p>

<p data-changed="false" data-paragraphid="23">Following the 15-basis-point raise to 0.25 percent in December, markets will be watching the Monetary Policy Committee's next meeting on Feb. 3. Policymakers are expected to contemplate another rate hike.</p>

<p data-changed="false" data-paragraphid="24">The bank is also working in a labour market that is unusually tight, with vacancies at an all-time high and employment still below pre-pandemic levels.&nbsp;</p>

<p data-changed="false" data-paragraphid="25">British inflation is widely expected to peak in April, when regulated household energy bills look set to increase by around 50%. Last month, the BoE forecast a peak of around 6%, but now some economists see 7% as more likely.</p>

<p data-changed="false" data-paragraphid="26">BoE Governor Andrew Bailey is due to speak to a parliamentary committee at 1415 GMT, and the bank will publish new inflation forecasts on Feb. 3. Its last set in November showed inflation staying above its 2% target until late 2024.</p>

<p data-changed="false" data-paragraphid="27">Rising inflation is also turning into a political problem for Prime Minister Boris Johnson's government, which faces calls from the opposition and charities to offset the rise in energy bills, which comes at the same time as a tax increase on wages to fund higher health and social care spending.</p>

<p data-changed="false" data-paragraphid="28"><em>(With inputs from agencies)</em></p>


Higher energy costs, rising demand, and supply chain concerns drove up consumer prices in December, pushing the UK inflation rate to a 30-year high. Inflation rose to 5.

Higher energy costs, rising demand, and supply chain concerns drove up consumer prices in December, pushing the UK inflation rate to a 30-year high. Inflation rose to 5.4 per cent on an annual basis, the highest level since March 1992, and up from 5.1 per cent in November, which was also a decade high. Economists polled by Reuters had expected an increase of 5.2%. Consumer prices increased 0.5 per cent on a monthly basis, exceeding economists' expectations of a 0.3 percent increase. The rising cost of living has fueled speculation that the Bank of England will raise interest rates once more. The Bank of England became the first major central bank to begin raising borrowing costs from pandemic-era lows in December. Following the 15-basis-point raise to 0.25 percent in December, markets will be watching the Monetary Policy Committee's next meeting on Feb. 3. Policymakers are expected to contemplate another rate hike. The bank is also working in a labour market that is unusually tight, with vacancies at an all-time high and employment still below pre-pandemic levels. British inflation is widely expected to peak in April, when regulated household energy bills look set to increase by around 50%. Last month, the BoE forecast a peak of around 6%, but now some economists see 7% as more likely. BoE Governor Andrew Bailey is due to speak to a parliamentary committee at 1415 GMT, and the bank will publish new inflation forecasts on Feb. 3. Its last set in November showed inflation staying above its 2% target until late 2024. Rising inflation is also turning into a political problem for Prime Minister Boris Johnson's government, which faces calls from the opposition and charities to offset the rise in energy bills, which comes at the same time as a tax increase on wages to fund higher health and social care spending. (With inputs from agencies)

Britain inflation rate jumps to 30-year high of 5.4% as cost pressures continue

The United Kingdom's inflation rose to 5.4 per cent in December, reaching the highest level in almost 30 years.

UK inflation hits highest in nearly 30 years

<p>British annual inflation dropped faster than expected in October to a near three-year low at 1.5 per cent as lower energy prices offset rising prices for clothes, official data showed Wednesday.</p>

<p>The Consumer Prices Index 12-month rate, the lowest since November 2016, compared with 1.7 per cent in September, the Office for National Statistics (ONS) said in a statement published ahead of next month's UK general election.</p>

<p>Analysts' consensus forecast had been for a drop to 1.6 per cent.</p>

<p>"Admittedly, the drop mainly reflected a slump in energy inflation and so was not a reflection of a weakening in underlying inflationary pressures," noted Ruth Gregory, senior UK economist at Capital Economics research group.</p>

<p>"Overall, the figures do little to change our view that inflation will spend more time below (the Bank of England's target of) 2.0 per cent than above it in 2020 and that if Brexit is delayed further, interest rates will be cut, in May," she added.</p>

<p>The pound meanwhile showed little reaction to the latest inflation data.</p>

<p>"For the third day running we've had some news that could have caused some selling in the pound, but the currency has remained largely unperturbed with economic data still playing second fiddle to political developments in terms of moving the markets," said David Cheetham, chief market analyst at XTB trading group.</p>

<p>Official data Tuesday showed British unemployment hitting 3.8 per cent, a fresh 45-year low. &nbsp;&nbsp;</p>

<p>And on Monday, the ONS said that Britain's economy avoided recession in the third quarter, with growth of 0.3 per cent.&nbsp;</p>


British annual inflation dropped faster than expected in October to a near three-year low at 1.5 per cent as lower energy prices offset rising prices for clothes, official data showed Wednesday.

British annual inflation dropped faster than expected in October to a near three-year low at 1.5 per cent as lower energy prices offset rising prices for clothes, official data showed Wednesday. The Consumer Prices Index 12-month rate, the lowest since November 2016, compared with 1.7 per cent in September, the Office for National Statistics (ONS) said in a statement published ahead of next month's UK general election. Analysts' consensus forecast had been for a drop to 1.6 per cent. "Admittedly, the drop mainly reflected a slump in energy inflation and so was not a reflection of a weakening in underlying inflationary pressures," noted Ruth Gregory, senior UK economist at Capital Economics research group. "Overall, the figures do little to change our view that inflation will spend more time below (the Bank of England's target of) 2.0 per cent than above it in 2020 and that if Brexit is delayed further, interest rates will be cut, in May," she added. The pound meanwhile showed little reaction to the latest inflation data. "For the third day running we've had some news that could have caused some selling in the pound, but the currency has remained largely unperturbed with economic data still playing second fiddle to political developments in terms of moving the markets," said David Cheetham, chief market analyst at XTB trading group. Official data Tuesday showed British unemployment hitting 3.8 per cent, a fresh 45-year low. And on Monday, the ONS said that Britain's economy avoided recession in the third quarter, with growth of 0.3 per cent.

UK inflation falls faster than expected in October

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