London: Britain’s annual inflation reached its highest level in 40 years, official data showed Wednesday. It further lowered workers’ wages and pressured the Bank of England to continue raising interest rates.
The National Bureau of Statistics (ONS) said in a statement that the rate rose from 9.0% in April to 9.1% in May, maintaining its highest level since 1982.
Inflation in the UK is expected to exceed 11% by the end of the year, boosted by soaring energy prices, according to the Bank of England.
Grant Fitzner, chief economist at ONS, said inflation rose in May as “food prices continued to rise and gasoline prices hit record highs.”
He added that this was offset by rising clothing costs within a year and falling computer game prices.
Decades-High inflation is causing a crisis in living expenses.
British railroad workers have been on the biggest strike in the sector this week in more than 30 years, as soaring prices undermine the value of wages.
Countries around the world are experiencing a surge in inflation as the Ukrainian war and deregulation of Covid have spurred soaring energy and food prices.
This has forced central banks to raise interest rates, which could lead to a recession as rising borrowing costs further hurt investment and consumers.
The Bank of England has raised major interest rates five times since December.
Meanwhile, Britain is facing more strikes, and lawyers in England and Wales have resolved to withdraw in a row over the proceedings from next week.
Teachers, state-owned National Health Service, and post office workers are also considering strikes.
