As the cost of living crisis worsens, UK inflation will rise to a new 40-year peak of

In summary, UK inflation has risen to 9.1%. This is the highest rate in 40 years, among the soaring food prices and record prices for gasoline and diesel.

National Bureau of Statistics figures show that inflation as measured by the CPI has reached its highest level since March 1982, putting a strain on households, especially low-income earners.

According to ONS, the main contribution is due to the fastest annual increase in food and non-alcoholic beverage prices since 2009. Bread, cereals and meat in particular have become more expensive, but fruit prices have remained almost unchanged last month. Food price inflation has risen from 6.7% to a 13-year high of 8.5%.

Record prices for gasoline and diesel have also boosted inflation as motor fuels have increased by almost one-third over the past year. This is the largest annual increase in records dating back to 1989.

Producer prices are also rising sharply, and consumer prices will rise further in the coming months. Manufacturer costs rose 22.1% in the year to May, the highest rate since records began in January 1985, but factory gate inflation rose to 15.7%.

Last week, the Bank of England warned that inflation would reach 11% later this year as gas and electricity prices soared. Meanwhile, the government and Network Rail have become railroad unions and loggerhead turtles in the fierce debate over wages and conditions and the largest train strike since the 1980s. Railroad workers were offered a salary increase of only 2%.

UK headline inflation hit a 40-year high last month. This is the highest of the G7 countries, which is today’s main story, and has accelerated the rise in UK home prices.

House prices rose 12.4% in the year to April, up from 9.7% in March, according to the National Bureau of Statistics. London continues to be the region with the lowest annual growth rate of 7.9%.

The average UK home price in April 2022 was £ 281,000, up £ 31,000 from the previous year.

Average annual home prices rose to £ 299,000 (up 11.9%) in England, £ 212,000 (up 16.2%) in Wales, £ 188,000 (up 16.2%) in Scotland and £ 165,000 (up 10.4%) in Northern Ireland. .. ).

UK expands trading plan to sell NatWest taxpayer shares

The UK government has extended the time it takes to sell the shares of NatWest Group taxpayers by another 12 months, as concerns over the global outlook are squeezing the stock prices of the UK’s largest banks.

The Treasury announced today that it will sell only the remaining 48.5% stake in NatWest. This is “if it has monetary value and market conditions allow”. During the 2007-2009 financial crisis, he bailed out a bank that was then known as the Royal Bank of Scotland.

The trading plan, which started in August last year, has been extended until August 11, 2023. All sales to date have fallen below the bailout price of 502p per share, which means taxpayer losses.

So far, about 703.5 million shares have been sold through the transaction plan and £ 1.6 billion has been raised for taxpayers.

NatWest’s share price rose 4.3% to 230.8p.

Gasoline and Diesel Prices Set New Records – RAC

Unfortunately, average fuel prices rose again to a new record on Tuesday. Tuesday was the first day of a railroad strike when more people went out on the road, RAC says.

The average price of gasoline has risen to 189.33p, and full tanks have exceeded £ 104 (£ 104.13). Diesel also reached a new high at 197.11p, approaching the £ 2 miles per liter. A full filling of diesel in a 55 liter family car currently costs an average of £ 108.41.

RAC Fuel Spokesman Simon Williams said:

But last week’s fall in oil prices and lower wholesale costs have put pressure on the biggest retailers to turn the tide and reverse the price of gasoline pumps. It seems that the current peak of gasoline has been reached, so we expect the four major supermarkets to start reducing prices. This should lead others to lower their prices as they dominate the UK fuel retail industry, which will benefit drivers everywhere.

Unfortunately, the situation with diesel is different. This is because last week’s wholesale prices are moving towards an average of £ 2 per liter. But if oil continues to fall, this can be prevented from becoming a reality.

In the market, European equities have plummeted and are approaching a bear market (defined as a 20% drop from the most recent peak).

According to Reuters, the STOXX 600 Benchmark Index fell 1.7% to 401 points, just 1% away from a 20% drop since its record high of 495.46 points on January 4.

Stock exchanges in Germany, France and Italy have returned to lows hit in early March when Russia invaded Ukraine. German Dax and Swiss SMI have already entered the bear market.

Melanie Baker, senior economist at Royal London Asset Management, has seen what the rise in UK inflation to 9.1% means for interest rates and consumers.

Again, there was little to reassure the Bank of England – inflation is well above target, core inflation is well above 2%, and service inflation has risen sharply over the past year. Some indicators of inflation expectations appear to be rising, and the labor market still looks tight.

It is unlikely that the last rate hike was seen this year. By raising interest rates, the World Bank can cool demand and lower interest rates in line with supply. By taking seriously and seriously tackling high inflation, they can help lower inflation expectations.But the banks are still Sending Ambiguous Messages About Interest Rate Outlook In the last few minutes, they haven’t sent as strong a message as they can.

Meanwhile, these high inflation rates will continue to accelerate faster than wage growth, and the financial situation of many households will deteriorate. High inflation in essentials, especially food and energy, coupled with central bank rate hikes, means that consumer outlook remains bleak. Consumer confidence and May retail sales data were released on Friday, both expected to be weak.

Europe needs Russia to prepare to stop all gas exports, IEA says

Joanna Partridge

According to the head of the International Energy Agency, Europe needs to immediately prepare Russia to stop all gas exports to the region this winter, to reduce demand and keep nuclear power plants open to the government. I called for work. Write to my colleague JoPartridge..

Fatih Birol said the decline in supply over the past few weeks due to the Kremlin’s maintenance work has in fact prevented Russia from filling up its storage facilities in preparation for the winter as Russia seeks to leverage the region. He said it could be the beginning of a wider reduction designed for the Kremlin.

“Europe should be ready in case Russia’s gas is completely cut off,” he said in an interview with the Financial Times. “The closer we are to winter, the better we understand Russia’s intentions.

“I believe the reductions are aimed at avoiding Europe from filling up storage and increasing Russia’s leverage in the winter.”

EU countries are competing to replenish their storage, and Germany hopes to reach 90% of its capacity by November. The store is only half full.

Member countries Working to reduce their trust For Russian fossil fuels, by procuring gas from other countries, including the United States, and accelerating the switch to renewable energy, authorities are competing to phase out Russia’s oil and gas more coal. It admits that it means burning and keeping the nuclear power plant running.

Here is an analysis of UK inflation. Larry Elliott, editor of economics, writes:

Are you there already? Every month the same question is asked about inflation in the UK. Are there any signs that the cost of living crisis will ease? And every month, the answer is negative. The current upward trend needs to go further.

May increase Consumer price index – Government-recommended inflation indicators – were modest by recent standards, but nevertheless 9% to 9.1% It was a new 40 years high.

Even more worrisome Producer price index There will be further price increases in the future.

PPI is a measure of what is happening at the industry level with respect to the costs a company pays for fuels and raw materials, and the costs a company charges its customers. This is an indicator of price pressure before it reaches the consumer.

The message here is tough. Fuel and raw material prices have risen by more than 22% year-on-year. This is the fastest speed since the modern record began in 1985. Prices of goods leaving the factory have risen at an annual rate of 15.7% from 14.7% in April. The National Bureau of Statistics said it soared the most in 45 years.

Moderna to build a new vaccine center in the UK

Moderna, a Boston-based biotechnology that developed one of two mRNA vaccines worldwide against Covid-19 Build a new research and manufacturing center In the UK, we will develop vaccines against new Covid mutants and other respiratory illnesses to improve our readiness for future pandemics.

The center plans to begin producing the first mRNA shots in 2025, and the UK government has promised to purchase the Moderna vaccine in the next decade.

The company’s CEO, Stephane Bancel, said the priority was to develop a jab that combines boosters against Covid, influenza and respiratory syncytial virus (RSV).

mRNA technology has proven to be one of the fastest routes to producing an effective vaccine against Covid and can also be used to address other illnesses such as cancer and heart disease.

Boris Johnson said:

Our investment guarantees a jab of weapons against some of the most powerful viruses out there and brings us to the forefront of the fight against future threats. We have all seen what vaccines can do, and today’s partnership is one step closer to finding us a cure for some of the most devastating illnesses.

Health Minister Sajid Javid added:

The new partnership with Moderna will solidify Britain’s position as a science superpower, significantly boosting the economy and creating jobs. It may also unlock next-generation vaccines to combat diseases such as Covid, seasonal flu, and RSV.

Pfizer-Vials labeled with BioNTech and Moderna coronavirus vaccines.
Pfizer-Vials labeled with BioNTech and Moderna coronavirus vaccines. Photo: Dado Ruvić / Reuters

Oil prices fall as Biden sets to reduce U.S. fuel costs

Today’s oil prices as US President Joe Biden prepares to cut driver fuel costs in a move that exacerbates the already-troublesome relationship between the White House and the US oil industry. Has fallen by more than 5%.

Biden is expected to demand a suspension of federal taxes of 18.4 cents per gallon on gasoline, Reuters quoted sources. The announcement is scheduled for 7 pm BST. The United States, the world’s largest consumer of oil, is struggling to curb soaring gasoline prices and high inflation.

Brent crude, the global oil benchmark, is trading at $ 109.72, down $ 4.32, while light crude in the US is down $ 4.72 to $ 104.35.

Tomorrow, executives from seven oil companies will meet with the President of the United States and are under pressure to lower fuel prices as they make record profits.

US President Joe Biden in the Roosevelt Room of the White House.
US President Joe Biden in the Roosevelt Room of the White House. Photo: Sarah Silbiger / EPA

Stocks, pound sterling and euro for sale amid growth concerns and rising inflation in the UK

Selling on the European stock market is accelerating. The STOXX 600, a major European stock, reached its lowest level since February 2020 and is currently down 1.8% at 401.26 points.

  • The UK’s FTSE 100 fell 97 points at 7,055, or 1.35%.
  • Germany’s Dax fell 296 points (2.2%) at 12,996
  • France’s CAC fell 113 points, or 1.9%, to 5,851.
  • Italy’s FTSE MiB fell 50 points (2.3%) at 21,586

The pound and euro fell as investors bought the US dollar instead, amid fears of global growth and UK inflation rising to its 40-year high.

Sterling fell 0.8% to $ 1.2198, reaching its lowest level in almost a week after headline inflation reached 9.1%. This is the best of the group in 7 countries. The euro fell 0.4% to $ 1.0497 and the dollar index rose 0.3%.

This is our complete story about inflation:

As the cost of living crisis worsens, UK inflation will rise to a new 40-year peak of

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