Britain's cost of living crisis
The rising cost of living in Britain has overshadowed the country's economy. The inflation rate, which is at its highest level in the last four decades, has negatively impacted the lives of an increasing number of citizens.
In 2021 and 2022, the cost of living in the United Kingdom dramatically increased. In October 2022, the annual inflation rate reached a 41-year high of 11.1%. Last week, the British Office for National Statistics reported that the country's annual inflation rate declined to 10.1% in January, compared to December and October, which had been 11.1%. Yet, the current inflation rate in the UK is believed to be close to the highest point during the last four decades.
Meanwhile, over 70% of adults in the UK fear that the cost of living will have a serious effect on their lives in the first half of 2023, an increase of 54% from the previous year. Furthermore, British market statistics indicated that food inflation in the four weeks leading up to February 19 was 17.1% higher than a year ago, a new record high that dealt an unexpected blow to households struggling with the rising costs of living. According to analysts, milk, eggs, and vegetable oil costs are soaring the most rapidly. According to a recent survey, British families might pay an additional £811 ($978) in annual shopping costs if they do not change their spending patterns.
In addition to the effects of growing prices on the lives of British citizens, the lack of various food products has prompted companies to impose purchasing limitations and ration fresh vegetables. For example, Asda, the third-largest supermarket in the United Kingdom, has placed a three-pack limit on tomatoes, peppers, cucumbers, lettuce, broccoli, cauliflower, and black raspberries.The UK's exit from the European single market is one of the primary causes of Britain's economic crisis and the climbing cost of living. After the conclusion of the Brexit transition period, retail trade with the EU has drastically decreased, with imports from the EU dropping by around 25% more than imports from the rest of the world. According to new research from the Bank of England [BoE], trade with the EU may be substantially lower than official data suggest. The Monetary Policy Committee of the BoE, which sets the official interest rate, has concluded that these significant implications show that Brexit had a greater impact on productivity than previously believed.In the midst of an unprecedented financial downturn, the 10 Downing Streets' desperate efforts to slash social welfare programmes to address the situation and support the war in Ukraine have triggered a wave of strikes and rallies.
