As the nations of the United Kingdom battle with the rapid increase in food prices, high energy costs, and political uncertainty, consumer prices rose 10.1% in September from a year earlier. The inflation is expected to climax next month at a slightly higher rate, witnessing a reversal in the government policy to hold down household energy bills. Prices are pushed higher by a significant increase in the cost of food and, to a marginal extent, in hotel and restaurant bills in September.
According to the Office for National Statistics, food prices increased by 14.5% last month, making it the most significant annual rise in the previous 40 years. The International Monetary Fund has predicted that the British economy will go from 3.6% growth this year to 0.3% next year as high inflation reduces purchasing power and tightens the monetary policy taking a toll on consumer spending and business investment.
This is a guest post by Millicent. Opinions expressed are entirely their own and do not necessarily reflect those of Satoshi’s Journal or Satoshi’s Entertainment Company.