UK inflation hits new 40-year high

Jul 20, 2022: British annual inflation surged to a new 40-year high in June on rising motor fuel and food prices, official data showed Wednesday, adding to a cost-of-living crisis.

The Consumer Prices Index (CPI) jumped to 9.4% last month from 9.1% in May, the Office for National Statistics said in a statement.

Analysts said the data put pressure on the Bank of England to raise interest rates by as much as 50 basis points, or half a percentage point, at its next policy meeting in August.

The central bank expects British inflation to top double figures this year.

"In the UK, we saw another eye-popping CPI reading and the pressure is on the BoE to do what it takes before it is too late to control inflation," said Naeem Aslam, chief market analyst at Avatrade.

Inflation has soared to the highest level in decades in many countries, fuelled by the war in Ukraine and the easing of Covid restrictions.

AFP/APP