The UK faces a cost-of-living crisis, with inflation reaching 10%
The cost of living crisis and inflationary The escalation has begun to affect consumers across the UK.
The cause of the cost-of-living crisis is rising inflation caused by record-high energy prices, supply chain disruptions in the wake of the COVID-19 pandemic, and the aftermath of sweeping Western sanctions on with Russia.
The Bank of England (BoE) predicts inflation will rise to 10% by the end of 2022. BoE Governor Andrew Bailey has warned British households to face a “huge income shock”, according to Sputnik. .
“The worst inflation factor I’ve heard about is food,” Mr. Bailey was quoted as saying by British media.
The Governor of the Bank of England explained to the UK House of Commons Finance Committee amid criticism of his response to rising prices by inflation above the government’s 2% target. .
Mr. Bailey said that the risk of food inflation “continues to be a great worry for the country and a great worry for developing countries”. He also denied accusations by the chairman of the House of Commons Finance Committee, Mel Stride, that the BoE was “behind the scenes in raising interest rates”.
The BoE sets an inflation target of 2% as measured by the consumer price index. However, official figures scheduled for release on May 18 show an annualized inflation rate of more than 9%.
“I’m not happy at all and this is a terrible situation,” the BoE Governor replied when British MPs asked why the Bank did not act before December to prevent inflation from skyrocketing by raising interest rates.
Mr. Bailey blamed global factors for the deepening of the cost of living crisis. He emphasized that 80% of them are beyond his control.
Post-pandemic supply chain disruptions and labor shortages are among the reasons. Governor Bailey admitted that the Bank had underestimated the number of people leaving the labor market after the COVID-19 epidemic. In addition, the trade consequences with Europe after Brexit were also raised by him.
Governor Bailey acknowledges the impact of Western sanctions on Russia related to hostilities Ukraine pushed world wheat prices and UK petrol prices to record highs.
at Blogtuan.info – Source: laodong.vn – Read the original article here