Rising Energy Costs Expected to Drive Inflation to an All-Time High in the UK

Rising Energy Costs, Expected to Drive Inflation , to an All-Time High in the UK.

'The Independent' reports that new data from the Office for National Statistics will paint a clear picture of the , cost of living crisis , experienced by households across the UK.

Officials at the Bank of England expect inflation to rise over 10% in 2022.

According to 'The Independent,' forecasts predict 2022 will see the highest one-year increase since the Consumer Price Index began keeping records in 1998.

April's rise in prices was reportedly driven by a surge in energy bills, which went up 54% for an average household.

A survey by consultancy firm McKinsey found that rising inflation was the largest concern felt by respondents in the UK, followed by the war in Ukraine and the COVID pandemic.

A survey by consultancy firm McKinsey found that rising inflation was the largest concern felt by respondents in the UK, followed by the war in Ukraine and the COVID pandemic.

'The Independent' reports that inflation figures could affect interest rates set by the Bank of England's, Monetary Policy Committee.

If confirmed, this would place huge pressure on the Bank of England to continue raising interest rates at upcoming meetings, Matthew Ryan, Analyst at financial services firm Ebury, via 'The Independent'.

Communications from the MPC have turned increasingly dovish and largely muddled in recent weeks, although we think that upcoming inflation prints will likely force the bank’s hand, Matthew Ryan, Analyst at financial services firm Ebury, via 'The Independent'.

On May 16, the Bank's governor, Andrew Bailey, said that the high price of global energy and goods will impact consumer demand and potentially increase unemployment.

On May 16, the Bank's governor, Andrew Bailey, said that the high price of global energy and goods will impact consumer demand and potentially increase unemployment.

The main driver of inflation and what brings it down is the very big, real income shock which is coming from outside forces and, particularly, energy prices and global goods prices, Andrew Bailey, Bank of England Governor, via 'The Independent'