Inflation hits 40 year high at nine percent | Personal Finance | Finance | Express.co.uk – Express

The rise comes as millions of people have been hit with rising gas and electricity costs that have pushed household energy bills to unprecedented levels. The Consumer Prices Index (CPI) showed an increase from March, when the rate was seven percent and February, when it was 6.2 percent.

Higher fuel and food prices, driven by the Ukraine war, are also pushing the cost of living up, with inflation expected to continue to rise this year.

The escalating prices has also contributed to the rising cost of living, deepening the crisis affecting millions of low and middle-income families.

The could fuel demands for the Chancellor to step up help for the most vulnerable people affected.

Commenting on the rise, the Chancellor of the Exchequer, Rishi Sunak said: “Countries around the world are dealing with rising inflation. Today’s inflation numbers are driven by the energy price cap rise in April, which in turn is driven by higher global energy prices.

“We cannot protect people completely from these global challenges but are providing significant support where we can, and stand ready to take further action.

“We’re saving the average worker £330 a year through reducing National Insurance Contributions, changing Universal Credit to save over a million families around £1,000 a year, and providing millions of families with £350 each this year to help with their energy bills.”

Inflation continues to move at fast pace, moving to the highest point seen in decades.

Despite the Bank of England increasing interest rates in a bid to address the impact of inflation on the UK economy, their two percent target is no match for the inflation rate.

Martin Lawrence, Director of Investments at Wesleyan, the specialist financial services mutual, said: “Inflation has turned into a runaway train, moving to the highest point we’ve seen in decades and further off track from the Bank of England’s two percent target.

“We’re likely to see this landscape of high inflation for some time to come, so further interest rate rises are almost inevitable. As a result, there is a growing risk of a potential UK recession on the horizon and, combined with soaring living costs for households, today’s news is unsurprising but unwelcome.

“Most families’ budgets are maxed out, but for those able to keep some money aside they need to make sure it is working as hard as possible and not languishing in accounts with low-level interest rates that will fail to keep pace with inflation.”

Graham Wells, financial coach at Haddington-based GroWiser Financial Coaching: “The combination of high inflation and historically low interest rates could be seen as good news for borrowers.

“The real value …….

Source: https://www.express.co.uk/finance/personalfinance/1612002/Inflation-rate-uk-rise-increase-April-2022-CPI

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