Inflation in the UK surprisingly rose to its highest level since 1992 with the impact of the rise in food prices.
According to data from the UK Statistics Office, consumer prices rose 5.4 percent in December compared to the previous year. This is the highest level since March 1992. Inflation rose 0.5 percent monthly.
CPI, excluding food and energy, rose to 4.2 percent, the highest level since 1992.
The increase in food and non-alcoholic beverages, restaurants, hotels, furniture, clothing, and shoes was effective in the monthly rise. Transportation and motor fuel costs have also increased.
It is stated that the rise in inflation may trigger a new interest rate hike from the Bank of England next month. Central Bank officials are worried that inflation will exceed 6 percent in the year’s first half. For this reason, the bank had increased interest rates for the first time since the beginning of the pandemic last month.
The interest rate decision will be announced on February 3.