by Sloan T. Wilson, The Chicago Times
May 19, 2022
LONDON – United Kingdom’s inflation rate breaks 40 year high on par with United States. Recession and stagflation expected.
According to the British Office for National Statistics, inflation for consumer goods reached 9%, in April, which has not been seen since the early 1980s. Britain’s Chancellor of the Exchequer Rishi Sunak believes the situation is now out of control and there is only so much the government can do in such a balancing act.
In a speech, Sunak admitted that inflation is eating into the consumers’ ability to spend. Energy prices are pushing all consumer good prices higher in combination with supply chain issues.
“Her Majesty’s Government is ready to do more, but at the same time, we need to be careful in a time of severe supply restrictions and unconstrained fiscal stimulus does risk making the problem worse.”
Many British consumers have been fearing the rise of hyperinflation and perhaps the return of 1970’s era stagflation in which the economy slows but prices continue to be high.