Worldwide Inflation Wreaks Havoc Record Broken In UK

June 23, 2022 daknewsnetwork

Worldwide inflation wreaks havoc, after America, the record of 40 years was broken in Britain: UK Inflation Rate Hike.

Not only India but the whole world is coming under the grip of inflation. Inflation is making new records with each passing day.

The biggest increase is recorded in the price of food, energy, and fuel.

According to the report of the Office for National Statistics (ONS), the inflation rate in the UK has broken the record in the last 12 months.

The inflation rate has increased from 9 percent to 9.1 percent in 12 months.

Things may be like the year 1970.

If we talk about the prices of food items, especially bread, cereals, and meat, the highest increase is being recorded in the last few years.

With the rise in the cost of food items, it is becoming costly to run the household expenses. In such a situation, unions and workers are demanding an increase in daily wages.

But the government warned that if there is a big increase in the salary by the company, then there will be an increase in the prices along with the increase in salary like in the year 1970.

Worldwide inflation wreaks havoc: The inflation rate may be 11 percent.

Inflation in the UK has broken the record for the last nearly 40 years.

This is the first time since 1982 that the inflation rate has gone up to 9.1 percent. Also, the Bank of England has projected the inflation rate to reach 11 percent.

Trying to control inflation.

However, it is not the case that inflation is only rising in the UK. Before the UK, the inflation rate had crossed the 9 percent mark, breaking the 40-year record in the US.

Since then, the US Federal Reserve has increased interest rates to control inflation, which is seen all over the world.

In India too, the Reserve Bank of India (RBI) had increased the repo rate by 50 basis points.

RBI’s Monetary Policy Committee said inflation of more than six percent is dangerous and said- the repo rate can be increased even further.

The fear of inflation, which has taken the breath of the central banks of the whole world, is also on the RBI.

In the meeting of the monetary policy committee of RBI in June, the kind of concerns was expressed by all the members of the committee regarding inflation.

It is also clear that the trend of increasing the repo rate is going to continue.

In May and June 2022, the RBI has increased the repo rate (the main statutory rate that decides the interest rates) by a total of 0.90 percent. But the threat of inflation has not subsided.