Thursday, 20 June 2024
Trending
EconomyEurope

UK inflation hits 2.3%, the lowest level in over three years

  • In April, UK inflation dropped from 3.2% in March to 2.3%, the lowest figure in almost three years.
  • Many economists predict that the bank will lower borrowing prices at its upcoming rate meeting, which is scheduled for June 20.
  • The cost of products and services has increased by 15% over the last two years, and food costs have increased by 25% or more.

In April, UK inflation dropped from 3.2% in March to 2.3%, the lowest figure in almost three years. This is the lowest level since July 2021, when the coronavirus outbreak was still hindering the world economy.

As a result of the decline, inflation is getting closer to the Bank of England’s target rate of 2%, which is expected to put pressure on the nine members of the rate-setting panel to lower interest rates from their current 16-year high of 5.25%.

UK inflation

Many economists predict that the bank will lower borrowing prices at its upcoming rate meeting, which is scheduled for June 20. However, if interest rates are lowered too fast, there is a greater chance of inflation rebounding due to persistent worries about the size of price increases in the vital services sector and the rate of wage increases.

Although the recent decline in inflation is encouraging, it does not mean that the worst cost of living crisis in almost 40 years is behind us. Reduced inflation indicates a slower rate of price increases.

How you interpret today’s inflation numbers depends on whether you see the glass as half full or half empty. Consumers are still facing considerably higher prices, according to James Smith, research director at the Resolution Foundation.

After Russia invaded Ukraine in 2022, inflation reached a peak of over 11%, which caused a significant spike in energy prices. The cost of products and services has increased by 15% over the last two years, and food costs have increased by 25% or more.

Because the British economy is once again expanding, the ruling Conservative Party is hoping that reduced interest rates and inflation will create a positive vibe in advance of the January 2025 general election.

Related posts
EconomyWorld

Singapore's Smart Ascent: Leading the World in Competitiveness and AI Innovation

Singapore regains top spot in 2024 World Competitiveness Ranking. AI-driven strategies propel…
Read more
EuropePolitics

2024 UK Election Poll Tracker: Labour Leads as Reform UK Gains Momentum

Labour maintains strong lead: Polls show Labour at 41%, holding a commanding position over other…
Read more
EconomyEurope

UK Economy Turns the Corner: Inflation Hits Target Amid Political Shifts

UK inflation returns to 2% target after peaking at 11.1% in 2022. Rishi Sunak claims economic…
Read more
Newsletter
Become a Trendsetter

To get your breaking, trending, latest news immediately without diluting its truthfulness join with worldmagzine immediately.

Leave a Reply

Your email address will not be published. Required fields are marked *

Middle EastPolitics

Political Move of Iran After the Death of Ebrahim Raisi

Worth reading...