UK inflation hits 40-year high in June

Annual inflation, as measured by the consumer price index, climbed to a 40-year high of 9.4% in June, the Office for Statistics said, from 9.3% previously. Core annual inflation fell to 5.8% in June from 5.9% in May, but the figure was still high and well above the Bank of England's 2% inflation target. Since the UK will have to increase electricity and gas bills until October, it is conceivable that UK inflation is basically not at its peak. According to changes in interest rate futures prices, the current market estimates that the Bank of England will raise interest rates by half a percentage point at the August 4 interest rate meeting, which is as high as 93%, which is close to the market consensus. The official UK rate is now 1.25%.