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Tuesday, June 18, 2024

Great Britain, inflation – February 2023. Inflation in Great Britain surprised economists

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UK inflation unexpectedly rose to 10.4 percent year-on-year in February, according to data from the Office for National Statistics (ONS). For comparison, in January the increase in prices of consumer goods and services was at the level of 10.1 percent. The Bank of England will announce its interest rate decision on Thursday.

Economists polled by Reuters had expected consumer price growth to fall to 9.9 percent in February. from 10.1 percent in January. Inflation in the UK in October amounted to 11.1 percent. year-on-year, which was the highest level in 41 years.

UK inflation

Food prices have risen at the fastest rate in 45 years, especially for vegetables, according to ONS figures. The increase in prices came after shortages appeared on store shelves, the BBC’s website pointed out.

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“High energy prices and bad weather in parts of Europe have led to shortages and rationing, pointed out the chief economist of the British Statistics Office Grant Fitzner. The deficit concerns especially tomatoes, peppers and cucumbers.

Core inflation – excluding energy, food, alcohol and tobacco prices – rose to 6.2% in February. from 5.8 percent listed in January. Meanwhile, a cut to 5.7 percent was expected.

Vegetable shortages in British storesPAP/EPA/NEIL HALL

“Dangerous high” inflation

British Finance Minister Jeremy Hunt said the figures showed that the expected fall in inflation could not be taken for granted. “It’s not inevitable that inflation will fall, so we must stick to our plan to halve it this year,” Hunt said in a statement.

The Minister of Finance on Tuesday pointed out that inflation above 10 percent. is “dangerously high”.

Bank England is expected to announce its decision on Thursday interest rates. Analysts are divided on whether there will be another rate hike due to recent shocks in the banking sector.

Main photo source: PAP/EPA/NEIL HALL

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