Damascus-SANA
The British economy was not better off than other world economies that were hit by inflation, as it was also affected by the wave of high prices in global markets and prices in Britain rose to their highest level in nearly 30 years.
Data from the Office for National Statistics showed that the annual inflation rate in Britain rose during the month of March to its highest level in three decades, amid the sharp rise in energy, metals and used cars prices.
Data from the office indicated that inflation rose from 6.2 percent in February to 7 percent in March on an annual basis, at a time when the Bank of England expected it to rise to 8 percent by the end of April, accompanied by a rise in the ceiling of energy prices by 54 percent during current month.
In light of the shrinkage in the value of incomes and the purchasing power of consumers as a result of the high inflation rate and the increase in the value of energy bills and taxes, the current inflation led to an increase in the retail price index by 9 percent on an annual basis in March, registering the largest increase since 1991, while the costs of raw materials jumped by 19.2 percent, which is The largest historically since the start of collecting this data in 1997, as this was accompanied by a rise in the producer price index, which jumped 11.9 percent compared to last year, which is also the largest increase since 2008.
Despite the fact that employers raised workers' wages to compensate them for the price hike, the waves of prices that reached their highest level during decades devoured these increases until many families were forced to change their living and consumption patterns.
The Guardian newspaper, in turn, stressed in a report that the British economy is at increased risk of falling into a summer recession amid the greatest pressure on household incomes since the mid-fifties, pointing out that the double whammy of slowing growth after the Corona pandemic shutdown and the rising cost of living after the Russian military operation in Ukraine could lead GDP will decline in the next two quarters of this year.
A report by the accounting giant “KPMG” saw that the figures recorded last month represent mounting pressure on consumers’ incomes and may force British Chancellor of the Exchequer Richie Sunak to do more to protect those most affected, in addition to increasing pressure on the Bank of England to raise interest rates, according to the newspaper. Financial Times.
While Jack Leslie, chief economist at Resolution, considered that the February figures were a precursor to the upcoming massive income pressures that would be a complete disaster for living standards, James Smith, an economist, warned
The Dutch bank ING said that the British economy will contract by 0.3 percent in the three months to the end of June.
Neil Shearing, chief economist at consulting group Capital Economics, expects disposable household income to fall by 1.9 percent this year, greater than the 1.8 percent drop in real income in 1977 and the biggest since records began in the 1950s. the past.
The Bank of England warned last week that its consumer price index would rise above 8 percent by June and could reach double digits at the end of the year if Russia's military operation in Ukraine keeps global energy prices at elevated levels.
Follow Sana's news on Telegram https://t.me/SyrianArabNewsAgency