Economic Report: U.K. inflation hits fresh 40-year high of 9.4%


Inflation in the U.K. hit a fresh 40-year high of of 9.4% in June, driven by surging gas and food prices, according to the Office for National Statistics.

Economists has expected a rate of 9.3%, up from 9.1% in May.

The report will put more pressure on the government to address the country’s cost of living crisis, a challenge made all the more difficult because the ruling Conservative party is undertaking a bruising leadership election.

Bank of England governor Andrew Bailey said on Tuesday that price pressures meant a 50 basis point increase in interest rates was possible at its next meeting.

The pound

was virtually steady, trading over $1.20, while the 2-year gilt

fell 7 basis points to 1.97%.

Ellie Henderson, an economist at Investec Securities, noted the core reading of inflation fell for the second month in a row, raising the possibility that measure of prices has peaked. “The details of the report lend support to this view, hinting at some unclogging of supply chains,” said Henderson.

Dow Jones Newswires: Putin says Nord Stream to restart, but flows may decrease

Previous article

: Can an effort to revamp anti-redlining lending laws survive the swamp?

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in News