Inflation spiked in UK and US

According to official data on April 13, the annual inflation rate rose from 6.2% in February to 7% in March – the highest level since March 1992 and higher than most forecasts. most economists in a news agency poll Reuters.

Widespread price increases, from fuels to food and furniture, are all driving up inflation.

Last month, Britain’s Office for Budget Responsibility forecast inflation would peak at around 8.7 per cent in the fourth quarter of 2022. Meanwhile, Samuel Tombs, chief economist at Macroeconomics firm Pantheon (UK), forecast inflation to hit 8.8% in April as the cost of living for households soars. but then fell below the Bank of England’s 2% target in the second half of next year.

People shop in a supermarket in London – UK Photo: Reuters

According to Reuters news agency, inflation in the UK has increased to unprecedented levels over the past year, similar to most other developed economies as energy prices rise and supply chain challenges due to the impact of the Covid-19 pandemic. 19. Russia’s military campaign in Ukraine from February 24 also contributed to pushing up energy prices even higher.

The US Department of Labor on April 12 released data showing that the consumer price index (CPI) in March increased by 8.5% over the same period last year, higher than the 8.4% rate. that economists forecast and this is the highest inflation since 1981.

Excluding food and energy prices, core CPI last month increased by 6.5% year-on-year and by 0.3% month-on-month, lower than the 0.5% expected by economists. Dow Jones economic forecast.

Mr. Andrew Hunter, senior US economist at Capital Economics, said that the increase in March is the peak of inflation and there are signs that price pressure will ease.

With inflation skyrocketing in the US, President Joe Biden’s approval rating has dropped to 41% this week. This is a blow to the Democrats’ hopes of maintaining control of Congress in the November election.

The survey found that Americans want Mr Biden to prioritize economic issues, with about 27% of respondents saying the economy is the most important issue facing the US right now.