Over the last few months, many countries all around the globe faced sharp inflation rates. The United Kingdom wasn’t spared from it, in fact, its inflation rate was one of the highest in Europe.
The main reason behind the inflation in the United Kingdom is the increase of the prices of fuel, energy and food. Even though the economy is directly affected, some experts are optimistic by saying that the current moment is the peak of the inflation and that it will decrease soon.
The inflation rate in the UK by the end of last month was 11,1%, which is higher than most of European countries. The increase of energy’s price is the most impactful and the prices will keep going up in the next few months.
It’s important to know that many individuals with long-term saving goals changed their strategies. The only way to beat the inflation is to invest. The market is offering different investment solutions and the population is looking for the safest and most profitable options.
However, consumers are losing their purchasing power. Prices are flying high and the income is not adjusting to the situation. Plus, the recession is coming and unemployment rates will be higher, which doesn’t help the population with the purchasing power.
Inflation impacted many countries in 2022. Even though it was opposed by an increase of interest rates, it kept going up and is now breaking records all around the world.