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The consumer price index in Britain reached its highest level in 30 years

The UK consumer price index rose to 5.4% year-on-year in December 2021, up from 5.1% in November, a 30-year high. This is written by the EP with reference to the country’s National Statistical Service (ONS).

According to the ONS, the last time annual inflation was higher was in March 1992. At the same time, price growth in Great Britain is accelerating for the third month in a row.

Rising inflation

As stated in the statistical service, the level of inflation is now related to the effects of lockdowns.

Thus, the biggest contribution to the increase in prices was made by the increase in the price of transport, food and non-alcoholic beverages, furniture and household goods, as well as housing services, the ONS adds.

Bloomberg reminds that in order to fight inflation, the Bank of England in December 2021 raised the key rate for the first time since June 2018 – the rate increased from 0.1% to 0.25%.

At the same time, the Bank of England became the first among the central banks of the G7 countries to take such a step.

Waiting for experts

Bloomberg writes that the rise of inflation in Britain to a record level was unexpected – experts predicted inflation at the level of 5.2%.

The agency adds that the growth of inflation is a global trend. In particular, in the USA, inflation at the end of 2021 was 7%, the highest rate since 1982.

In the euro zone, the price index accelerated to 5% in December, the highest level since the introduction of the euro.