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UK inflation soars beyond 10%

Thursday, 18 August 2022 2:04 AM [ Last Update: Thursday, 18 August 2022 2:04 AM ]

Saeed Pourreza

Press TV, London

The sizzling temperatures have cooled off in the UK but the inflation rate is only heating up. Prices are going up everywhere as inflation, this time driven by food price hikes, jumps to its highest level since 1982 coming in at 10.1%.

Millions of families across Britain are trying to make their money stretch but it’s getting harder by the day. Economists say the UK is facing a perfect inflation storm caused by a number of factors: the disruptions and delays caused to the supply chain by Brexit, the pandemic and the ongoing western-backed war in Ukraine:

The global economy reopened suddenly after covid, creating bottlenecks at ports compounded by post Brexit red-tape, followed by astronomical energy prices resulting from a decision to wean the UK from Russian energy.

Inside the UK that has translated into higher transport and packaging costs, soaring energy and food prices that means bills getting more and more expensive in supermarkets, restaurants and gas stations feeding the demand for higher pay which adds further to business costs which turns into even higher prices.

And it is that demand for wage increases that’s seen multiple public-sector strikes in recent weeks. It is a worsening mess that some economists say is in large part the UK government’s own doing. All this at a time when the UK awaits a new prime minister. Whoever they maybe, they have their job cut out for them.

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