Britons warned of damaging impact of rising inflation
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
Inflation hit nine percent in May, meaning the remaining income for many households won’t go as far, with food and other vital items costing much more. New data from the US shows that inflation is making UK residents pay the most of any G20 nation.
Statistics released by the US Department of Labor today show the country’s inflation rate rose by three percent last month.
According to the consumer price index (CPI), in May products cost 8.6 more, up from 8.3 percent in April.
While the long-awaited findings mean Americans are paying a lot more for their groceries, they are still paying less than other countries.
The UK, on the other hand, now has the highest inflation rate of any G20 nation.
The latest inflation reports of 24 G20 economies show that the UK has the fifth-highest rate.
The country’s rate is close to Russia’s, which has grown to 17.1 percent as sanctions pick apart the Putin-run economy.
The only other countries above the UK are Brazil, Argentina and Turkey, with rates of 11.73 percent, 58 percent and 73.5 percent, respectively.
When factoring in the latest data, the UK is two places removed from the US, with the Netherlands and Spain in between.
G20 nations have the following inflation rates:
China: 2.1 percent
Saudi Arabia: 2.3 percent
Japan: 2.5 percent
Switzerland: 2.9 percent
Indonesia: 3.55 percent
Australia: 5.1 percent
France: 5.2 percent
Singapore: 5.4 percent
South Korea: 5.4 percent
South Africa: 5.9 percent
Canada: 6.8 percent
Italy: 6.9 percent
Mexico: 7.65 percent
India: 7.79 percent
Germany: 7.9 percent
Euro Area: 8.1 percent
United States: 8.6 percent
Spain: 8.7 percent
Netherlands: 8.8 percent
United Kingdom: 9 percent
Brazil: 11.73 percent
Russia: 17.1 percent
Argentina: 58 percent
Turkey: 73.5 percent
The UK will likely remain in its present place among the G20 for the foreseeable future.
By the end of 2022, the Bank of England expects inflation to max out at 10 percent.
The institution predicted some relief the following year with a several-point drop to 4.3 percent.
But in 2023, Britons will have to reckon with a new financial squeeze; economic contraction.
Recent forecasts suggest the country is also destined for the slowest growth of any developed nation.
The Organisation for Economic Co-operation and Development (OECD) has projected no growth for the UK economy in 2023.
Officials predicted a 3.6 percent expansion in 2022, followed by zero percent the following year.
The forecast means the UK drops from the second-fastest growing economy in the G7 to the slowest.
Source: Read Full Article