In the year to February 2022, the Consumer Price Index (CPI) increased by 6.2%, up from 5.5% in January. The figure represents the highest record inflation data since the National Statistics series' inception in January 1997, as well as the highest inflation rate in the historic modeled series since March 1992, when it was 7.1%. In March, the inflation rate reached 7%.

The highest contributors to inflation were housing and household services, which contributed 1.39 percentage points. These included expenses such as electricity, gas, and housing costs. The second highest contributor to the inflation figure was transport costs, in the form of fuel prices and second-hand cars; they contributed 1.26 percentage points.

Inflation Could Go Higher

The central bank is now walking a tight rope between reigning in inflation and staving off a recession. Markets anticipated a rate increase in May, when the Bank of England meets. Indeed, at its May meeting, the Bank raised its base rate by 25 basis points to 1%, which was the highest level in 13 years.

According to the Office of Budget Responsibility (OBR), inflation could hit 8.7% in the year's final three months. That would be the highest figure in 40 years. The drivers of inflation are the Ukraine-Russian war, supply constraints, and stimulus spending.

Wages for workers in the UK have been increasing, but not at the same rate as inflation. Many workers are now finding that the cost of living isn't matching price increases or what they are accustomed to.

Causes of Inflation

The UK, much like the rest of the world, has massive stimulus packages and social programs to cushion the impact of the Covid-19 pandemic on its economy and people. The actions increased spending and hastened recovery. Sadly, the pandemic had a negative effect on the supply chain. As too much money chased too few goods, it resulted in inflation in the UK and worldwide.

Inflation from the Covid-19 was still in effect when Russia invaded Ukraine. The invasion has not only created uncertainty in global markets, but it has had a real impact on commodity prices. Russia is a significant exporter of oil and gas, vital commodities in the energy markets. Russia and Ukraine are also significant exporters of agricultural goods. Due to the war, Ukrainian farming has been disrupted, and Russian energy products are banned in the UK.

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Even UK is not exempted? It come to shows that whatever Nigeria is going through right now, it is as result of global warming. All countries are affected.

That's not really inflation with the percentage I'm seeing. They should come to Nigeria to see real inflation,where price increases by 300%. It even increases on daily basis in Nigeria.

robinso01:
That's not really inflation with the percentage I'm seeing. They should come to Nigeria to see real inflation,where price increases by 300%

Yes, not as crazy as that of Nigeria.

Mindlog:


Yes, not as crazy as that of Nigeria.

Aswear, Nigeria own is on daily basis

Lol
Recession loading for them. Funny how Russia has improved since they invaded Ukraine but all the western sanctioners are suffering. US recession, Europe famine and blackout, UK inflation,


Putin is the world's #1 leader. Russians are lucky to have him.

That's why I was amazed at how the Nigerian youth is so detached from reality.

In 2020, the world went into lockdown.
It was self-evident that after the pandemic, would be a session of high inflation and severe policy changes.

Even sophisticated economies were going to suffer the impact of the fallout.

What did we do in Nigeria?

We said it was time to burn down all our facilities in the name of "End SARS".

I know, my opinion would not be popular amongst the largely frustrated youths but i tell you, the impact of your actions would always be felt.

The US is technically in recesssion and much of Europe is feeling the recoil effect of a lockdown married with the Ukraine/Russia debacle.

Ghana is enduring economic pain and Sri Lanka just staged a "revolution".

Our society should be focused on producing.

Producing either for export or as a substitute to that which we do import.

Watch what would happen... they'll be shouting APC/PDP/Labour up and down whilst avoiding the Elephant in the room.