UK inflation rate hits new 40-year high of 9.1% – NewZimbabwe.com

By Associated Press

LONDON: Britain’s inflation rate hit a new 40-year high of 9.1% in the 12 months to May, figures showed Wednesday, as Russia’s war in Ukraine drove food and fuel prices ever higher.

The Office for National Statistics said consumer price inflation rose slightly from 9% in April, itself the highest level since 1982.

Chief economist Grant Fitzner said “continued steep food price rises and record high petrol (gasoline) prices were offset by clothing costs rising by less than this time last year, and a drop in often fluctuating computer games prices.”

The increase was in line with analysts’ expectations and signals no quick end to the cost-of-living squeeze facing millions in Britain. The Bank of England says inflation could hit 11% in October when a cap on domestic energy bills is raised.

Jack Leslie, senior economist at economic inequality think-tank the Resolution Foundation, said inflation would likely climb further in June because of “the big spike in petrol prices over the past month.”

“With the economic outlook so unclear, no-one one knows how high inflation could go, and how long it will continue for – making fiscal and monetary policy judgements particularly tough,” he said.

Inflation is soaring worldwide. U.S. consumer prices surged 8.6% in May, the biggest jump since 1981, while the 19 countries that use the euro saw a record 8.1% increase the same month.