Apart from the unwanted record of sky-high inflation, Britain has almost certainly the highest inflation among G7 countries. Even though Japan has not reported its data yet, it is unlikely to reach Britain's price growth.
Estimates were exceeded
Reuters experts estimated the inflation to reach 9.3% the most, which was a slightly milder scenario. In the last month, local food prices grew by 10% year-on-year, and petrol prices rose even by 42%.
Will interest rate continue to raise?
Finance minister Nadhim Zahawi announced that Britain was not the only country to face growing inflation. The government will cooperate with UK's central bank to solve the issue, he added. The Bank of England has raised interest rates five times since December and is expected to increase them again on August policy meeting. [1]
Progress of basic interest rates in the UK during last five years. (Source.tradingeconomics.com)
Europe facing similar
Based on data provided by the statistical office of the EU Eurostat, the annual inflation rate within the EU was 9.6% in June 2022. In euro area, the inflation rate was a bit lower and rose to 8.6%. Baltic countries face the highest inflation. Similarly to the situation in the UK, inflation was mainly caused by growing energy costs, what contributed to price growth of food, alcohol and services. A year ago the year-on-year inflation rate was 2.2% in the EU and 1.9% in the euro area.
Olivia Lacenová, Analyst of Wonderiterest Trading Ltd.
[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or based on the current economic environment which is subject to change. Such statements are not guaranteeing of future performance. They involve risks and other uncertainties which are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements. [1,2]
