Inflation in the UK rose again in February. The shortage of fresh products and the price of women’s clothing and drinks justified the rise that brought British inflation back to a 40-year high. In February, the price index reached 10.4%, three tenths more than in January, and only one tenth of the maximum reached in December.
Analysts were surprised by this rise, as they anticipated a drop in inflation to values below 10%. However, at the moment, inflation is more than five times the 2% target set by the Bank of England.
The central bank is now faced with the need to control inflation on the one hand, and on the other hand, concerns about the consequences of the global banking problems, with the possibility of raising interest rates on Thursday.
The “salad crisis,” as the British call it, refers to an unprecedented shortage of fresh produce on store shelves, driving up prices for the few items available.
High energy prices continue to put pressure on household budgets.
Rising inflation in the UK also increases the pressure on the Bank of England to raise interest rates.
These data come after the UK government predicted last week that inflation would slow sharply to 2.9% by the end of the year, with the UK poised to avoid recession.
Globally, inflation reached record levels last year, when the Russian invasion of Ukraine began to hit energy and food prices.
Source: TSF
