Inflation in England rose again

According to the report of the international group Tasnim news agency, newspaper ” Frankfurter Allgemeine Zeitung wrote in an article: In England, inflation has unexpectedly increased again. Financial markets now expect the Bank of England to delay a possible interest rate cut.

Thus, UK inflation rose surprisingly in December. Consumer prices rose by an average of 4.0 percent in December compared to the same month last year, the ONS said in London on Wednesday. In November, the inflation rate fell to 3.9 percent, the lowest level in more than two years. Economists polled had expected the rate to fall further to 3.8 percent. However, clothing, airline tickets and entertainment became significantly more expensive, as did food and tobacco after the tax hike.

Financial markets now expect The Bank of England is expected to start cutting interest rates later than previously expected. It raised its key interest rate a total of 14 times between December 2021 and August 2023, taking it to a 15-year high of 5.25 percent. Monetary authorities want to use this strategy to fight inflation, which reached a 41-year high of 11.1 percent at the end of 2022. Their target is two percent inflation.

The issue of inflation is also likely to affect the outcome of this year’s parliamentary elections. “Jeremy Hunt”, the British finance minister, said: “Inflation will not decrease in a straight line, but our plans are working.” Rachel Reeves, the potential successor to the UK minister from the opposition Labor Party, which is leading in the polls, said that many families have been financially worse off in the past 14 years under the Conservative leadership.

Meanwhile UK house price declines continue to accelerate, with prices falling by the most in November compared to more than a dozen years ago. The UK Statistics Office announced that this figure decreased by 2.1% compared to November 2022 and was negative 1.3% in October. The biggest decrease has occurred in London.

At the same time, the inflation rate in England, which after a record-setting period in 2022, has been declining for the past ten months Budd has once again been on the way to rise and has disturbed the calculations of financial institutions in this country. The Consumer Price Index (CPI), a measure of inflation, rose to 4 percent in December from 3.9 percent in November, up 0.1 percent from the previous month.

Economic experts, taking into account the downward trend of inflation in recent months, predicted that the British Central Bank would apply the first reduction in interest rates in May. But the change in the path of inflation has disrupted the calculations of this financial institution and other economic institutions. . Not long ago, the Economist magazine called the current state of the British economy a chronic crisis, which was exacerbated by the country’s exit from the European Union.

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