May 23, 2024

UK inflation picked up again in February

UK inflation picked up again in February

Pubs in London

© AFP

Inflation in Great Britain surprisingly rose again in February. The rate was 10.4 percent year-on-year, the Office for National Statistics said on Wednesday. Inflation has weakened recently, with inflation in the kingdom at 10.1 percent in January. In fact, consumer prices were expected to continue to decline.

Last week, the British government predicted the rate would fall to 2.9 percent by the end of the year. But in February, clothing and food and drink have become significantly more expensive, including going out to pubs and restaurants.

The development is now increasing pressure on the country’s central bank, which plans to announce its interest rate decision on Thursday. However, like many central banks, which are currently weighing further interest rate hikes to curb inflation and a cautious monetary policy in the face of a banking crisis – high interest rates have led to difficulties for the companies involved. In addition, high interest rates weaken the economy, which will also be problematic for Great Britain at this time.

AFP

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