Inflation in the UK could rise to as much as 7.25 per cent in April. According to the central bank, a long period of high inflation may now be ahead. Poor families suffer the most from rising food and heating prices.
6.2. 2:00 | Updated 6.2. 11:28
London
Britannian inflation is at its highest since the 1990s, and no household is safe from rising prices.
Bank of England warned on Thursday, inflation in the UK could rise to as much as 7.25 per cent in April. According to the central bank, a long period of high inflation may now be ahead.
At the same time, there is a significant drop in living standards.
Citizens dissatisfaction with the rise in everyday life may soon rock the Prime Minister Boris Johnson position more than anything coronation court.
By You Gov at the end of January survey as many as 77 percent of voters feel that the Conservative government has poorly or very poorly prevented the rise in the cost of living.
Inflation, which is already hitting 6 percent in February, is a problem for Johnson that cannot be hidden from voters.
Prime Minister Boris Johnson has refused to resign despite the fuss. On Thursday, instead, four close aides to the prime minister resigned.
The immediate consequences of Britain’s EU separation, brexit and pandemic, have not been felt in every household. Rising prices, on the other hand, will not escape.
Published by the British Statistical Office (ONS) in early February figures according to 66 per cent of the adult population have already noticed an increase in the cost of living in the previous month.
The most the cost of living is raised by higher energy costs and higher food prices.
“Heating costs have clearly risen. Before, our family’s bill per month was about a hundred pounds (about 120 euros). Now it is around £ 140 (€ 168), ”says the person on family leave Becky Turner.
Becky Turner (left) and her friend Sarah Cahill were shopping in the market with their babies in London.
Turner now focuses on caring for his two-month-old daughter, but before that he worked in the food industry as a sales specialist.
“There hasn’t been anything other than inflation in supermarket chains lately.”
Britannian According to Statistics Finland of them, which have noticed a rise in prices, say as much as 87 percent of food prices have risen. 79 percent are concerned about their gas and electricity bills.
Energy has been in Britain before relatively expensive. Since April, the average heating bill in British households has continued to rise by more than 50 per cent to more than £ 1,970 (over € 2,280) a year.
Energy regulator Ofgem announced rising prices on Thursday.
Automatic the increase in energy prices will affect at least 22 million customers.
“Everything is tilting. You have to be careful with the heating, but I don’t want to save too much. I would rather be angry when warm than angry when I am cold, ”also a pensioner shopping at the market Anne Brown said.
The price of gas commonly used to heat British homes has already risen by more than 17 per cent since October.
ONS: n by already a third of Britons regulate heating less to save. In addition, more than half have already reduced their purchases of non-essential products.
Of course, inflation does not hit every household in the same way. Consumption is different, and that is why everyone has their own inflation.
At the end of January, a large jar of beans for 35 pence, or about 42 cents, was available from the large Sainsbury’s chain.
Poor families are hit hardest by rising food and energy prices. The poorest tenth of households spend more than half of their income on necessities.
Higher-income earners, on the other hand, suffer the most from rising transport costs (such as petrol and travel tickets).
In the Sainsbury’s chain, 500 grams of cheap fusilli cost 70 pence, or about 84 cents. The cheapest rice is 45 pence or 54 cents a kilo. Lidl’s cheapest spaghetti costs less than 40 pence, or less than 48 cents a pound.
IS S announced at the end of January to monitor the prices of the various products more closely than before. In the background was a well-known British activist-blogger Jack Monroen attention that price increases for the cheapest (less than a pound) products can be as high as one hundred percent.
In opposition reminding the seated Labor Party of inflation is a way to hit the sticks in Johnson’s stroller. Labor has taken inflation as one of its election themes, including in London, where local elections will be held in early May.
Meanwhile, Johnson’s government is planning tax increases.
“At our house [Britanniassa] is very heavily taxed for 70 years and in the midst of an inflation crisis, ”Labor Director Keir Starmer rebuked Johnson’s board in the lower house on Wednesday.
British opposition leader Keir Starmer of the Labor Party.
In Britain, political roles are now on their heads.
Traditionally a conservative government advocating tax cuts plans to raise taxes because the pandemic has heavily indebted the state. According to the Labor Party, the economy should gain momentum again, and this will not be achieved by taxing more.
Traditionally, conservatives have accused Labor of wastefulness. Now the Labor Party is giving back: the government has been forced to record impairment losses and losses of more than € 10 billion in failed supplies of protective equipment during the pandemic.
“Them [konservatiiveille] Taxpayers are an ATM that gets money for their own and friends ’lifestyles [sen rahoittamiseksi]”Starmer said Wednesday in the lower house.
In grocery stores however, the rise in prices may be just beginning. The rise in world market prices for various raw materials is not yet fully reflected in consumer prices.
The same still applies to the additional costs of the EU difference, brexit. Brexit has increased the bureaucratic burden on importers and exporters.
“The extra costs of Brexit feel the worst at the wholesale level, at least so far,” he says Richard Stark which runs a vegetable shop in London founded by his father 22 years ago.
According to vegetable trader Richard Stark, the price of tomatoes, among other things, has risen sharply.
English – Slovak in fruit shopping Robert Kiss has noticed a clear rise in prices, but still buys seasonal blood oranges, figs and pomegranates.
Kiss is working on import cuts himself: “You can see the price increase there too.”
Britannian the Treasury minister Rishi Sunak announced on Thursday, a £ 9 billion or more than € 10 billion aid package to alleviate the energy crisis for consumers. There will also be reductions in municipal taxation.
British Chancellor of the Exchequer Rishi Sunak said in the House of Commons on Thursday that it is not possible to keep energy prices “artificially” low.
The subsidy per household is around £ 200 a year. The targeted municipal tax relief is around £ 150.
The government has not wanted to reduce VAT on energy. The reason is reportedly that the wealthy would benefit.
When the Brexit campaign got hot before the referendum in 2016, voters were promised that the EU difference would allow for a cut in VAT.
The pressure on households with mortgages is also being boosted by the Bank of England raising its key policy rate to 0.5 per cent on Thursday. Further increases are expected later this year.
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