FX.co ★ UK inflation surges to 30-year high

Great Britain has set another record. The UK annual inflation rate has hit its highest level in 30 years.

According to Britain's Office for National Statistics, the country’s consumer price inflation jumped to 7% in March, the highest rate since March 1992, when it stood at 7.1%. Food prices rose by 1.1% in March compared to a 0.8% increase in February, while they gained only 0.3% in March last year. In the fourth quarter of this year, CPI inflation is expected to peak at 8.7%. Moreover, some experts predict the inflation rate may even rise to 10% or above.

The main factor behind high inflation was a surge in energy prices. The average household dual fuel tariff jumped from £1,227 to £1,971 as the UK energy regulator raised the price cap by 54% on gas and electricity bills at once. In October, the costs are anticipated to advance by 115-130% to £2,750-2,950. From April, due to rising gas and power prices, most Britons are forced to spend a higher proportion of their income on utility bills. At the same time, welfare payments increased by an average of only 3.1%.