Inflation hits 40-year high

by | May 18, 2022

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Inflation has hit a fresh 40-year high of 9%, official data showed on Wednesday, after energy prices surged in April.
According to the Office for National Statistics, the headline consumer price index rose to 9.0% in April, up from 7% in March. It is the highest reading since comparable readings in 1982, although the figure was also marginally below consensus expectations of 9.1%.

Including owner occupiers’ housing costs, the index rose by 7.8% in the 12 months to April, from 6.2% in March.

The largest upward contribution to annual CPIH inflation was housing and household services, which includes electricity, gas and other fuels. In April, the energy bills rose by 54% in response to surging wholesale prices.

Transport costs also weighed heavily, rising 1.47 percentage points as the cost of motor fuels continue to rise.

Naeem Aslam, chief market analyst at Ava Trade, said: “Inflation in the UK is completely out of control, and there is no doubt soaring inflation is having a negative influence on disposable income.

“Consumers are struggling to meet their daily needs and now the pressure is even more on the Bank of England to do more to control inflation. But it is walking a fine line, and can only do so much to control inflation by increasing the interest rate.”

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