Annual food inflation in the UK rose to a record 17.1% in February. Such a high level has not been seen in the last 45 years, as reported by the international marketing research agency Kantar on Tuesday, February 28th.
Kantar noted that for UK residents, rising food prices are the second most important problem after spending on electricity.
Moreover, if in 2022 every fifth participant in the study admitted that they were experiencing financial difficulties, then in 2023, every fourth one said this.
Earlier, on January 31, it became known that residents of the UK were faced with an unprecedented increase in the prices of gas, electricity and food. For example, a local brewer complained that the price of malt and electricity doubled.
On January 2, the Financial Times predicted the UK would face the worst recession in 2023 among the G7 countries. According to analysts of the publication, the Bank of England will keep high interest rates due to the inflationary shock against the backdrop of the conflict in Ukraine. And the country’s government, in turn, will adhere to a fairly strict tax policy.
In December, analysts reported that real wages in the UK fell by a maximum of 3% in 2022. This is the sharpest drop in real wages since 1977 and the second worst since 1945.
The UK and a number of other European countries faced rising energy and food prices after the imposition of sanctions against Russia. The West has stepped up sanctions pressure on the Russian Federation in connection with a special operation to protect Donbass. However, the restrictions imposed have led to serious consequences for the entire global economy.
