In the UK, consumer prices are going through the roof, as the country is facing its highest inflation in three decades.
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Inflation jumped to five-point-four percent in December. That’s while the latest rise in wages was at an annual rate of three-point-eight percent in the three months to November. The soaring inflation is deepening a cost of living crisis in the UK. Prices of food and energy as well as transportation have already risen and expected to go higher in spring. The Bank of England is now under pressure to raise interest rates to cool spending and bring down inflation towards its two-percent target. Several factors are to blame for the situation, including Brexit and global supply shortages fueled by the covid pandemic.