The U.K. Office for National Statistics (ONS) reported that the consumer price index (CPI) rose 9% year on year in April. This was the highest level in 40 years as rising food and energy prices exacerbated the cost of living crisis in the UK.
Compared with the previous month, the CPI rose by 2.5% in April.
The 9% year-over-year increase in the consumer price index was the largest since records began in 1989 and were higher than the 8.4% increase in March 1991 and the 7% increase in March 2022.
Since April 1, U.K. energy regulators have raised the cap on residential energy prices by 54% after energy prices soared. This includes an unprecedented rise in world gas prices
The Bank of England (BoE) has raised interest rates in four consecutive meetings from a record low in the corona virus era of 0.1% to a 13-year high of 1% in hopes of capping inflation at 1% without hurting economic growth.