The inflation rate in England surged in April to 9%, its highest level since 1982.
Britain now has the highest inflation of Europe’s big economies and among the Group of Seven
(G7) leading industrialized nations. Last month, the International Monetary Fund (IMF) forecast
that England faced slower economic growth and more persistent inflation than any other major
economy in the world.
Soaring energy bills were the biggest inflation driver in April. Households in England now face
the biggest cost-of-living squeeze since records began in the 1950s, Britain’s budget forecasters
say, and consumer confidence has sunk to all-time lows.
Food prices in England rose by nearly 7% in the 12 months to April, while factories increased
prices by 14%, the biggest jump since July 2008.
The Bank of England has forecast that inflation will top 10% later this year and investors expect
the central bank will add to the four interest rate increases it has implemented since last
December, taking the country’s Bank Rate to 1%, the highest level since 2009.