UK inflation hits 40-year high

While inflation in the UK continues its upward momentum, it continues to put pressure on wages.

In April, consumer prices in the country increased by 9 percent compared to the same period of the previous year. The expectation of economists participating in the Bloomberg survey was that the increase would be 9.1 percent. In March, annual inflation in the country was 7 percent.

The increase in consumer prices in April was recorded as the highest increase in 40 years.

On a monthly basis, inflation in the country was 2.5 percent in April. The expectation for this data was recorded as 2.5 percent.

Real wages are falling

The course of the increase in wages in the UK continues below the inflation rate.

According to the data released before the April inflation figures, according to the inflation-adjusted figures, average earnings excluding bonuses fell by 1.9 percent compared to the previous year and recorded the biggest decrease since 2013.

Excluding bonuses, wages rose 4.2 percent in the first quarter, more than double the 2.1 percent average in the decade before the pandemic. In contrast, consumers have faced an almost unprecedented decline in their real disposable income, as inflation is on its way to surpass 10 percent by the end of the year and the government has increased taxes.