Latest inflation figures spell disaster for Rachel Reeves as UK economy in crisis | UK | News
The UK’s inflation rate remained unchanged last month, but almost twice twice the target of the government and Bank of England. The National Statistics Office (Ones), published on Wednesday, showed that the consumer prices index inflation rate remained fixed by 3.8% in August in August.
Although the cost of the weekly food shop continued to increase, it was the level that most economists expected. Food and beverage inflation rate increased from 4.9% to 5.1% in July. This represents the fifth month in a row when the ratio increases.
Ones Chief Economist Grant Fitzner said: “The cost of flight tickets was downward downward with a period of less than a year after a year ago after a major increase due to the timing of summer holidays this month, in July.
“This was balanced with the increase in prices in the pump and the cost of hotel accommodation less than last year.
“Food price has climbed for the fifth month in a consecutive month, and small increases between various vegetables, cheese and fish substances have been seen.”
Since the UK Bank (Boe) thinks that it keeps interest rates at higher levels, this ratio will add pressure on Households.
It is unlikely that the unchanging figure will be welcomed by Chancellor Rachel Reeves and is almost twice twice the 2% target determined by the government and Boe.
“I know that families find it hard and many economies are stuck. So I am determined to reduce costs and support people who are facing higher bills.”
The official added that the government “awarded a stronger, more stable economy that rewarded hard work, and that people took action to put more money on their pockets”.
Shadow Chancellor Sir Mel Stide, the government could not control inflation, he said.
He said: “This morning, the inflation is deeply worried about the families that the target is far above the target. This has exceeded the 2% target of 11 months.
“The Labor Party’s decision to increase taxes and increasing borrowing increases costs and stops inflation – makes daily foundations more expensive.”
