U.K. inflation came in at an annual 7% in March, its highest since for 30 years.
Boris Glass, senior economist and director at S&P Global Ratings, said British inflation rates are likely to rise and remain at record highs throughout 2022.
"The raising of the cap on household energy bills will add an extra point or so by the end of this month. The surge in inflation will hit household budgets hard, especially those on lower incomes who have now exhausted pandemic savings," Glass said in an email Wednesday. "Whilst the short term is set to be painful, the bulk of high inflation should start falling as early as next winter, if global energy prices do not continue to rise further."
Even if and when inflation falls, however, it will remain above the central bank's target well into next year, Glass anticipates. He also suggested that if energy price caps increase further in October, inflation will decline more slowly and last considerably longer. "The Bank of England is worried about medium term inflation. Whilst currently high rates are largely due to global energy prices, the fact that domestic items are gathering momentum increasingly justifies that worry," Glass added.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
WWE Sets First Major U.K. Stadium Event in 30 Years in Cardiff, Wales“The weekend will be filled with a variety of WWE experiences that we believe will leave a lasting memory, on par with SummerSlam at Wembley Stadium in 1992.”
Read more »
Tish Cyrus Files for Divorce From Billy Ray Cyrus After Nearly 30 Years of MarriageTish Cyrus has filed for divorce from Billy Ray Cyrus for the third time, Billboard can confirm.
Read more »
Honda plans to invest $40 billion on EVs and launch 30 models by 2030 | EngadgetHonda plans to invest $40 billion on EVs and launch 30 models by 2030
Read more »
“This was an execution”: Man sentenced to 30 years for murder of his cousin in ArvadaIsiah Alexander Bennett was sentenced Friday for the murder of 26-year-old Raymond Jutting on June 27, 2020.
Read more »
Baby formula shortage 2022: Stores ration sales with nearly 30% of popular brands sold outStores ration sales of baby formula with nearly 30% of popular brands sold out
Read more »
Baby formula shortage 2022: Stores ration sales with nearly 30% of popular brands sold outStores ration sales of baby formula with nearly 30% of popular brands sold out
Read more »