Inflation figures news live: Cost of living crisis deepens as price rises hit 40-year high


Inflation has hit its highest level in 40 years amid the deepening cost of living crisis

(Getty Images)

Inflation has hit its highest level in 40 years amid the deepening cost of living crisis.

The rate shot up to a fresh record high of 9 per cent last month, up from 7 per cent in March, following a £700 increase to energy bills.

It comes after Andrew Bailey, governor of the Bank of England, warned of “apocalyptic” food prices in the months ahead due to the war in Ukraine. The central bank has said inflation is likely to keep rising to around 10 per cent this year.

The Confederation of British Industry also warned of a “historic squeeze” in household finances and a “tough trading environment” for businesses.

The business organisation increased pressure on chancellor Rishi Sunak to bring forward extra help to deal with the rising cost of living.

The British Chambers of Commerce said the “unprecedented” impact of rising inflation meant a “real chance” of a recession later this year.

Its head of economics Suren Thiru called for Mr Sunak to reverse the rise in National Insurance Contributions and cut VAT on business energy bills to 5 per cent.

1652858370

‘Real chance’ of recession later this year

The British Chambers of Commerce said the “unprecedented” impact of rising inflation meant a “real chance” of a recession later this year.

BCC head of economics Suren Thiru called for Rishi Sunak to reverse the rise in National Insurance Contributions and cut VAT on business energy bills to 5 per cent.

He said: “The jump in UK inflation in April is eye-watering and underscores the growing cost-of-living crisis facing households and the damaging squeeze on firms’ ability to invest and operate at full capacity.

“The marked acceleration in the headline rate in April reflected the continued upward pressure on prices from surging energy and commodity costs, as well as the energy price cap rise and the reversal of the VAT reduction for hospitality in the month.

“The scale at which inflation is damaging key drivers of UK output, including consumer spending and business investment, is unprecedented and means there is a real chance the UK will be in recession by the third quarter of the year.”

Another interest rate rise in June was “inevitable” but that would do little to address global factors driving inflation up, he said.

Chiara Giordano18 May 2022 08:19

1652857517

Warning of ‘historic squeeze’ in household finances

The Confederation of British Industry warned of a “historic squeeze” in household finances and a “tough trading environment” for businesses.

The business organisation increased pressure on chancellor Rishi Sunak to bring forward extra help to deal with the rising cost of living.

CBI chief economist Rain Newton-Smith said: “Inflation was always likely to hit hard in April given the energy price cap increase.

“Looking ahead, inflation is likely to stay high, with a resulting historic squeeze in households’ incomes and a tough trading environment for businesses. It is critical the government explores options to help people facing real hardship now, and support cashflow for vulnerable firms.

“Stimulating business investment is also crucial, to both plug the near-term gap in growth and to shore up the economy’s potential to withstand future shocks.

“Turning good intentions on a permanent investment deduction into a firm commitment, setting out an infrastructure roadmap and publishing a digital strategy are steps which can be taken without delay.”

Chiara Giordano18 May 2022 08:05

1652856617

Inflation reaches fresh record high at 9 per cent

Prices rose at their fastest rate in more than 40-years in the 12 months to April as households struggle with a sharp increase in energy bills.

Inflation climbed to a fresh record high of 9 per cent last month, up from 7 per cent in March, following a £700 increase to energy bills.

Around three-quarters of the overall surge in inflation came from higher energy bills.

Our economics editor Anna Isaac has the full story:

Chiara Giordano18 May 2022 07:50

1652856512

Good morning and welcome to The Independent’s live coverage of the cost of living crisis.

Inflation has hit its highest level in 40 years after shooting to 9 per cent in April, the Office for National Statistics has revealed today.

Stay tuned for rolling updates and reaction.

Chiara Giordano18 May 2022 07:48



Source link

Denial of responsibility! galaxyconcerns is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave A Reply

Your email address will not be published.