UK inflation hits highest level in 30 years

Inflation in the UK reached its highest level in the last 30 years with 5.4% on an annual basis in December last year.

In the statement made by the British Office of National Statistics (ONS), it was reported that the Consumer Price Index in the country increased by 5.4 percent in December last year, seeing the highest level of the last 30 years on an annual basis.

While CPI was expected to increase by 5.2 percent in December last year, inflation was 5.1 percent in the previous month (November) last year.

According to ONS data, inflation in the country was last recorded as 7.1 percent in March 1992.

In the statement, it was noted that the recent increases in food and energy prices in the country were effective in reaching record levels in inflation.

According to experts, with the continuation of the increase in energy prices, it is possible to reach 1992 levels again in inflation in the next period.

Paul Dale, Economist at Capital Economics, headquartered in London, said that inflation in the country is now expected to reach 7 percent by April this year.

Last month, the Bank of England (BoE) decided to raise the policy rate by 15 basis points to 0.25 percent in order to combat the increasing inflation pressure.

It was stated in the Monetary Policy Committee minutes that the inflation in the UK, which was 3.1 percent in September last year, rose to 5.1 in November, and that the inflation is expected to continue to hover above 5 percent in the winter months and to peak at about 6 percent in April 2022. .