finance news

UK Inflation rate up 9%, hits 40-year high as food & energy bills soar

UK Inflation rate up 9%, hits 40-year high as food & energy bills soar

Millions of households in the United Kingdom are reportedly facing increased energy bills as prices are surging at the fastest rate in over 40 years. According to reports, inflation in Britain increased to 9% in the year to April, rising from 7% in March.

Last month, millions of citizens saw their energy bills jump by a shocking £700 ($872) per year. The cost of living in UK is rising at an astronomical pace due to higher food and gas prices caused by the Ukraine invasion, with inflation predicted to persist until the end of this year.

UK-based consumer group, Citizens Advice, stated that the warning signs could not be louder for the state to provide better help to households, while debt charities encouraged anyone having trouble paying bills to seek help sooner than later in the year.

As per the Office for National Statistics (ONS), rising gas and electricity bills registered for over three-quarters of the rise in inflation in April.

Last month, an increased energy price cap, the highest price per unit that distributors can charge users, went into effect, resulting in an average annual bill of £1,971 for households using a standard amount of electricity and gas.

As per the Institute for Fiscal Studies, all income level households have previously experienced equal rates of inflation, however, the country’s poorest are now being affected the most by skyrocketing inflation since they need to spend significantly more of their household expenditures on electricity and gas.

In the meantime, average petrol prices in April 2022 were at the highest level recorded, at £1.62 per liter, as compared to £1.26 per liter a year before.

Fuel, oil, and food prices have already been climbing for months because of the pandemic and the Ukraine crisis, and wages have failed to keep up.

With homes under greater strain, the government is being pressed to provide more assistance.

In response to the recent numbers, Chancellor Rishi Sunak stated that he cannot entirely protect people from growing inflation since it is a global issue.

However, PM Boris Johnson indicated that he would look at all the measures required to help people who are struggling with escalating bills.

Source credit:

About the author

Omkar Patwardhan

Omkar Patwardhan started his professional career in the hospitality industry. Having nurtured a deep-sated passion for words however, he found his way into content writing and now pens down articles for numerous websites, including News Origins, spanning the sectors of business, finance, and technology.