Consumer prices were 10.4 per cent higher in February compared to a year earlier, the Office for National Statistics announced. In January, inflation was still 10.1 percent and analysts predict inflation will fall slightly below 10 percent in February. Over the past month, eating out and food in particular has become more expensive in the UK.
This puts further pressure on the purchasing power of the British people, as wages in the UK are not rising very rapidly. Rising inflation is also a setback for Chancellor of the Exchequer Jeremy Hunt. He wants to halve inflation this year, reduce the national debt and get the economy growing again. Hunt predicted earlier this month that UK inflation would be less than 3 percent by the end of this year.
Due to very high inflation, which is also higher in the UK than in many other countries, many British people are experiencing financial problems. There have been regular strikes in the country for months by various professional groups seeking higher salaries.
The Bank of England will announce on Thursday whether interest rates will be raised again to curb inflation. This would be the eleventh consecutive interest rate hike.
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