How is inflation going in the UK
UK inflation facts, numbers, comments and scenarios. The article by Daniele Meloni
British citizens will experience annual increases of £ 1,200 per year in their bills and tax hikes. And the Bank of England has predicted that inflation will rise to 7%, a level not seen since 1991. The pressure on the Tory government to do something to mitigate the high cost of living in the pockets of the British is at the highest level. For now, the premier has ruled out acting on VAT – UK VAT – and some conservative MPs are urging him to postpone the increase in National Insurance – scheduled for next April – and to restore the triple guarantee – triple lock – on pensions, frozen by Chancellor Sunak in last October's budget. Decisions are expected in the coming days that can impact the lives of UK citizens and Tory voters.
The shopping cart of the British is getting more and more expensive. According to the Bureau of National Statistics, the cost of meat increased by 12% in one year, that of snacks by 11, eggs by 3.5% and milk by over 4. The British Retailers Consortium, the association representing UK supermarkets, said prices will continue to rise in 2022 due to the simultaneous rise in labor costs, supply chain and supply chain problems, and rising related costs in wholesaling.
Another pressing problem for the government and, above all, for families, is related to energy bills. In 2021, the British paid over 18% more for their electricity than in 2020, while the price of gas rose by 28% (source: Office for National Statistics). Industry experts predict that the regulatory authority, Ofgem, will raise the cost ceiling up to 50% to protect businesses. In doing so, the increase in household bills will be 2,000 pounds a year. The Minister for Business, Kwasi Kwarteng, is moving on energy and is meeting regularly with Ofgem's top management and the CEOs of companies in the sector.
House prices and rents are on the rise. Johnson had staked a lot in the 2019 election campaign on housing policies but in 2021 house prices have risen, so much so that now the average value of a house is 20,000 pounds higher than in the pre-pandemic, settling at 273,000 pounds according to the studies of the real estate company Halifax. For renters, too, it's pains: rents increased by 1.7% in 2021 compared to 2020 and a further 4.5% increase is expected this year (3.5 in London).
Fuels have also been at the center of the controversy between the government and trade associations. The increase in gasoline was 24% last year, averaging 145.5 pence per liter in a year in which demand has grown and supplies have suffered setbacks. Likewise, the price of cars, in particular second-hand ones, also increased by 28% on an annual basis, after having always decreased with peaks of up to -6% in the previous three years.
Johnson and the Conservatives will have to devise solutions that protect Middle England and the retirees who are closest to the party's demands and provide them with the largest pool of votes in the elections. Losing their support would mean switching to the opposition after 12 years of Tory rule.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/mondo/regno-unito-aumento-tasse-bollette/ on Mon, 10 Jan 2022 06:49:05 +0000.