Britain faces its first year of double-digit inflation in 40 years
At an inflation rate of 10.1%, the United Kingdom joins 2 billion other people in experiencing a decline in buying power due to rising prices.
According to the Office for National Statistics, the inflation rate in the United Kingdom hit 10.1%. The Consumer Price Index (CPI) increased by 10.1% between July 2021 and July 2022. It is a considerable increase from June’s 9.4%.
The ONS attributed the price increase to housing and household services, including fuel and transportation (fuel again), food and beverages.
The current price per litre at the pump in the United Kingdom is approximately £1.72 ($2.08), having just approached the £2 threshold. Diesel costs £1.84 ($2.23) a litre, falling below the £2 threshold in June. According to the ONS, rising food costs contributed the most to inflation.
According to Alex Gladstein, the Human Rights Foundation’s chief strategy officer, the United Kingdom joins a number of nations experiencing double-digit price rises. More than 2 billion individuals globally are experiencing a rapid decline in purchasing power.
Coin Bureau’s Guy believes that the worst is yet to come for people of British descent. He tweeted that winter gas surcharges are just around the bend. Paul Dales, the senior U.K. economist at Capital Economics, warned in July that inflation might rise to 12% in October and that interest rates will be increased from 1.25 percent to 3 percent, however, it is uncertain whether they will increase by 25 basis points or 50 basis points in August.
Bitcoin continues to wrestle with the mid-$20,000s against an inflationary backdrop, as commentators and industry experts often debate whether Bitcoin is an effective inflation hedge.
The Guardian noted that this is the fourth time in the past 70 years that the inflation rate has exceeded 10%. The preceding eras occurred more than four decades ago, while Margaret Thatcher was in power.
The United Kingdom is now without a political leader after Prime Minister Boris Johnson resigned in July and will officially retire on September 6. Rishi Sunak and Liz Truss are now vying for the leadership position and have both made pro-crypto sentiments.