LONDON, March 23 — Britain unveils today a budget update aimed at easing a cost of living crisis, as data revealed inflation spiking to a three-decade high on soaring energy prices.
The Bank of England has warned that inflation will surge even higher in the coming months as Russia’s Ukraine invasion sparks major price gains for crude oil, domestic energy and food prices. Spiking domestic electricity and gas costs were a key factor in February’s broad-based price gains, according to the ONS.“Inflation rose steeply in February as prices increased for a wide range of goods and services, for products as diverse as food to toys and games,” added ONS chief economist Grant Fitzner.
Spiking global inflation has forced central banks around the world to lift interest rates, including the BoE which last week lifted borrowing costs to 0.75 per cent.However, his hands could be tied regarding major giveaways.“Measures such as a temporary cut to fuel duty would not fundamentally alter the outlook, which remains heavily dependent on geopolitical factors and global commodity markets.”
Yes, the Western sanctions really worked further...