In the month of July, the UK scaled higher, beating estimates and underscoring relentless price pressures, increasing the pressure for action on the Bank of England and the UK government while squeezing consumers.
According to the Office for National Statistics, the Consumer Prices Index rose to 10.1% in July, a percentage last seen last year, after a 9.4% in June. Economists had expected a reading of 9.8%, and the Bank expects inflation to top out at 13.3% in October.
The Conservative Party leadership candidates to succeed Boris Johnson, Liz Truss, and Rishi Sunak are facing increasing pressure to offer radical solutions to the country’s historic cost-of-living crisis.
Currently, the BoE is in a tough spot due to the continuous rate hike of the Fed, increasing prices, and inflation. Russia’s invasion of Ukraine has
also increased inflation because of gas unavailability.
According to the BoE estimates, those price rises will push inflation even higher over the next few months, to around 13%. The market is losing interest in the UK as there is an increased risk of recession in the country.