United Kingdom
05/18/2022 – 17:510
Updated: 05/19/2022 – 06:45
With inflation above 9%, many families and businesses are interested in gas. However, London remains
LONDON – Brexit, Covid with its impact on the global supply chain and then the war in Ukraine with gas and fuel prices rising. A number of factors that have led to price increases not seen in decades.
Official estimates from the UK government are for an increase of more than 9% in April alone, more than double the standard wage adjustment. A worrying result, only achieved during the austerity measures of the Thatcher era.
An oversized increase that chokesas a chain, industries and services with additional costs hitting the populace, who not only sees the purchase price of the goods on the supermarket shelves rising, but also the electricity and gas bills.
Added to this are growing concerns about possible food shortages in the remainder of 2022 given the UK’s close reliance on cereals (particularly wheat) but also on sunflower seeds (and the oil derived from them). As has already been noticed by those who have noticed a much higher price when buying the usual Fish & Chips.
A quarter of UK citizens have started skipping at least one meal, reports a recent poll by Ipsos and Sky News. Half switched supermarkets (in favor of the discounter) and left the car in the garage more often. Two-thirds of the families, on the other hand, have turned off the heating. In addition to raising prices (to which the mythical “pint” was not immune), restaurants and pubs have also begun reducing the portions served to customers.
“I don’t use the term lightly, but consumers are at risk of an apocalyptic price hike,” commented Bank of England governor Andrew Bailey, who hinted at a possible 10% hike for the year. “Inflation in this way is teary-eyed,” commented the British Chamber of Commerce in a note, “thrusting Britain’s families with rising living costs and hurting businesses.”
In this regard, the government’s inaction is frustrating for many who prefers to hold off at the moment. According to Economy Minister Rishi Sunak, this is “a generalized and global inflation”, structurally endemic and therefore not easy to address: “We cannot fully protect the population from this global phenomenon, but we are ready to take targeted action”.
According to observers, the plan of the government, but also of the central bank, is to wait and see whether the emergency could occur again in the summer with a view to a possible massive intervention in autumn.
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