Britain’s inflation rate hit its highest level in 40 years last month as Russia’s war in Ukraine fueled further increases in food and fuel prices
Consumer price inflation accelerated to 9% in the 12 months to April, from 7% the previous month, the Office for National Statistics said on Wednesday. This is the highest rate since 1982, when inflation hit 11%, according to statistical modeling by the ONS.
Millions of households across Britain were hit with a 54% rise in their gas and electricity bills last month after regulators raised the energy price cap to reflect previous increases wholesale prices. Russia’s invasion of Ukraine put additional pressure on food and energy prices.
The figures will increase pressure on the government to ease a cost of living crisis that economists say will lead to the biggest drop in living standards since the 1950s.
The government could cut income taxes and is drawing up plans to increase subsidies for low-income people who struggle to pay their fuel bills, British media reported on Wednesday. He is also considering a windfall tax on energy companies benefiting from high oil and gas prices.