Whereas in some countries, a 10% inflation rate is considered normal, in the UK, it is an absolute record. Thus, last month, the consumer price index accelerated to a multi-year high of 10.1%.
According to the official data, the UK inflation rate beat a record high of the last century, reaching 10.1% on a yearly basis. The last time such an unprecedented rise occurred in 1982. However, compared to the previous month, consumer prices added just 0.7%. Notably, this year, inflation has hit the highest levels several times already. In other words, inflation has broken several records that were maintained during the recent decades. In July, the consumer price index rose ahead of projections of 9.8%. Analysts emphasize that the price growth has been severely affecting ordinary people amid the ongoing cost of living crisis. What is more, the income of households may continue falling.
Meanwhile, the retail price inflation increased even more to 12.3% on a yearly basis, reaching the highest level since March 1981. Notably, at the beginning of August, the Bank of England raised the key interest rate by 0.5 percentage points to 1.75%. It was the first hike since 1995.
