The cycle of interest rate hikes by the Bank of England has not been able to stop the price rise for the time being
Inflationary pressures continue to hit the global economy. Also in the UK, despite the fact that the Bank of England is well ahead of the rate hike cycle, precisely to contain the rise in the CPI. On Wednesday, the UK’s National Statistics Office reported that inflation in the country rose to 9.1% in May, from 9% the previous month, to a 40-year high.
Notably, it is the highest rate since March 1982. The data is available just days after the Bank of England tightened its monetary policy by implementing its fifth consecutive rate hike. the main interest rate at 1.25%.
These are maximums from the past 13 years. And that the monetary institution has put the brakes on (by raising interest rates by just 25 basis points in its latest move) because of the weakness the UK economy has been showing lately.
Despite this, the institution warned last week that it expects inflation to remain above 9% in the coming months, and even warned it could exceed 11% in October, if energy prices rebound in light of the outlook. that the energy regulator (Ofgem) is raising the limit on the tariffs that providers may charge consumers for energy. A ceiling that has been in force in the country for years and that the government revises every six months.
From Bankinter’s analytics department, they say that while May’s CPI reached its 40-year peak, the data is in line with expectations. And the underlying interest rate loses a tenth from the previous month. “The main increases are in Accommodation (+19.4% YoY), Transportation (+13.8% YoY) and Domestic Expenditure (+10.8%),” they recall.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
