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photo source, Alamy
Even the British are afraid of shopping.
In Britain, where ‘historic’ inflation has hit, citizens are rapidly cutting back on consumption. Sales of fuels such as oil and diesel fell 4.3 percent from the previous month as of last month, and sales of clothes fell 4.7 percent. Of course, this situation is not unique to the UK.
UK inflation is the fastest in 40 years
In the UK, the price of ‘almost everything’ from oil to milk, cheese and eggs is rising.
According to the UK National Statistical Office (ONS) on the 21st local time, the UK inflation rate rose 9.4% in a year. This is the fastest rate in the last 40 years.
Specifically, low-fat milk showed a 26.3% increase, butter 21.5%, and bottled water 19.5%. Flour prices also rose 19.3%.
Food prices were hit hard by the Ukrainian War. Grain production has been disrupted, which has affected other food sectors as well.
The rise in oil prices is largely due to the war.
According to ONS statistics, the average price of gasoline last month was 1.84 pounds (2882 won) per liter, the highest number since 1990. Just last year, it was only 1.29 pounds (2021 won) per liter. Diesel fuel prices soared to 1.92 pounds per liter.
As a result, many British citizens are rapidly reducing their daily consumption.
Food consumption has increased… ‘A loophole in statistics’
However, there is a marked increase in consumption. it’s food However, many experts analyze that “it is only a temporary phenomenon due to the overlapping holidays.”
Paul Dales, chief researcher at Capital Economics, a British economic research institute, said regarding the recent increase in food consumption, “Last month, to commemorate the 70th anniversary of Queen Elizabeth II’s reign, citizens have been stocking up on sausage rolls, cakes and alcohol for the party. Because,” he said.
He pointed to a decrease in the consumption of clothing and daily necessities, saying, “Citizens showed a tendency to reduce consumption in other fields instead.”
Analysts say that the consumption of party ingredients only increased for a while on the occasion of the anniversary.
Many British citizens actually complain of anxiety.
Christine and Mel Simpson, from Derby, northern England, feared the situation would get worse in the winter.
“I think it depends on how cold the winter will be and how long inflation will last,” Mel said. “We have no way of knowing.”
Another British citizen, Rachel, said, “I’ve reached the level of living on a daily basis. I can’t save. I’m trying to reduce my utility bills like electricity and water. I’m paying special attention to the things we use every day.” did.
Raising wages doesn’t help either.
According to ONS, average wages in the UK rose 4.3 per cent in March and May. However, the increase in wages is insufficient to keep up with the rate of inflation.
If inflation is taken into account, real wages have decreased by 2.8%, analysts say.
In addition, ordinary homeowners who were living while paying off their mortgages due to rising interest rates are experiencing double hardship. The interest you have to pay each month has increased significantly.
Traditionally, the Bank of England has raised interest rates whenever inflation occurs. However, there are many voices calling for other measures to be taken in this situation.
As this inflation is more closely related to international conditions such as rising oil prices than ever before, simply raising interest rates in the UK does not guarantee that inflation will be controlled.
Korean producer prices are ‘highest in history’
The situation is similar in Korea. According to the Bank of Korea on the 22nd, the producer price index rose 0.5% from the previous month in last month, the highest since statistics were compiled.
Producer price is the price at which producers sell goods or services.
photo source, News1
An increase in producer prices leads to an increase in consumer prices.
Among agricultural, forestry and marine products, onion prices rose by 84%, and fish, such as cutlassfish, which are often served on Korean meals, also rose by nearly 20%. Chicken is also up 2.5%, so it’s no longer cheap meat.
Oil prices also rose by around 10% each for diesel and gasoline.
Producer prices are usually reflected in consumer prices following two to three months. Consumer prices also rose by 6% last month, reaching the highest level in more than 23 years.