Inflation in the United Kingdom rose to 9% in April, the highest rate in 40 years

Inflation in the United Kingdom rose to 9% in April, the highest rate in 40 years

According to new official data, the inflation rate rose last month at the fastest pace in history

The consumer price index inflation rate rose to nine percent in April from seven percent in March, according to the Office for National Statistics (ONS).

It was the fastest measured speed since records began in 1989, and the ONS estimates it was the highest since 1982.

The price cap on energy bills, which was increased by 54 percent for the average household at the beginning of April, had a large share in the increase.

Grant Fitzner, chief economist at ONS, said: “Inflation rose sharply in April, due to a sharp rise in electricity and gas prices when a higher price cap came into force.

“About three-quarters of the annual rate increase this month came from energy bills.

“Today, we also released new modeled historical estimates that show that annual CPI inflation was last higher 40 years ago.”

The numbers have put tremendous pressure on Chancellor Rishi Sunaka (right)

Bank of England Governor Andrew Bailey warns situation is

Bank of England Governor Andrew Bailey warns situation is “apocalyptic”

Chancellor Rishi Sunak stressed that the problem was global and insisted that the government “could not protect the people completely.”

He said: “Countries around the world are facing rising inflation.

“Today’s inflation figures are due to higher energy prices in April, which in turn is due to higher global energy prices.

“We cannot fully protect people from these global challenges, but we provide significant support where possible, and we are ready to take further action.

“We save the average worker £ 330 a year by reducing national insurance contributions, changing Universal Credit to save more than a million families around £ 1,000 a year, and providing millions of families with £ 350 a year to help with their energy bills. . “

Shadow Chancellor Rachel Reeves said the inflation rate, which would reach nine percent in April, would be “a major concern for families that are already stretched out.”

She confirmed that the Labor Party will force a vote on the emergency budget today, stepping up pressure on the government to do more to help families in trouble.

She said: “We can no longer wait for action from this government, which is out of reach.

“Today, Labor has forced a vote for the emergency budget and the growth plan.

“The Tories must support it.”

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The Confederation of British Industry warned of “historic pressure” on household finances and a “harsh business environment” for businesses.

The trade organization has increased pressure on Mr. Sunak to provide further assistance in addressing rising living costs.

CBI chief economist Rain Newton-Smith said: “Inflation has probably always been tough in April, given the rise in energy prices.

“Looking ahead, inflation is likely to remain high, resulting in a historic downturn in household incomes and a tough business environment for businesses. It is essential that the government explores ways to help people who are now facing real difficulties and to support cash flow for vulnerable companies.

“Stimulating business investment is also crucial to fill the short-term growth gap and support the economy’s potential to withstand future shocks.

“Turning goodwill into a permanent investment deduction into a firm commitment, setting an infrastructure roadmap and publishing a digital strategy are steps that can be taken without delay.”

The British Chamber of Commerce said the “unprecedented” impact of rising inflation meant a “real chance” of recession later this year.

BCC chief economist Suren Thiru has called on Rishi Sunaka to reverse the increase in national insurance contributions and reduce VAT on energy bills for businesses to five percent.

He said: “The jump in inflation in the United Kingdom in April is charming and underscores the growing cost-of-living crisis facing households and the damaging pressure on companies’ ability to invest and operate at full capacity.

“The sharp acceleration in the overall April rate reflected continued upward pressure on prices from soaring energy and commodity prices, as well as an increase in the energy price cap and the abolition of the VAT reduction for hospitality in the month.

“The extent to which inflation is hurting key drivers of UK output, including consumer spending and trade investment, is unprecedented and means there is a real chance that the UK will be in recession in the third quarter.”

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