inflation in the United Kingdom will stand at “just over 10%” by the end of this year, announced Thursday the Bank of Englandwhich raised its main rate by 0.25 percentage points to try to counteract the uncontrolled rise in prices.
It is the fourth consecutive increase in the guide rate of the Bank of Englandwhich places it at 1%, its highest level since 2009.
“Global inflationary pressures have seriously intensified since the Russian invasion of Ukraine“, the central bank pointed out in the minutes of its monetary policy meeting, justifying its decision.
British households will feel the pressure especially in the fourth quarter, with the expected increase in regulated energy prices in October, which will lead inflation to culminate its spike at “just over 10%”.
As a consequence, the Gross Domestic Product British (GDP) should contract in the last quarter of the year, according to the issuing bank, which forecasts negative growth of 0.25% in 2023.
The British currency, the pound, reacted to this news by falling against the dollar: at 11:35 GMT it lost 1.54% to change to 1.2436 dollars.