The UK is preparing for new inflationary jumps

Analysts of the Confederation of British Industry (CBI) say that the UK is waiting for new jumps in inflation, as well as rising costs for business and an increase in the cost of living.

Annual inflation in the country accelerated from February 6.2% to 7% by the end of March. This indicator has updated the record since 1992. At the same time, on a monthly basis in March, consumer prices rose by 1.1% after an increase of 0.8% in February.

Alpesh Palea, a leading economist at the CBI, noted that such a jump in inflation in March is not the last, and we should expect another price increase in April, when the increase in marginal energy prices will take effect. The volatility of global commodity prices and ongoing disruptions in supply chains continue to be additional factors of price growth. As a result, businesses will face higher costs, and households will face an increase in the cost of living.

Palea believes that the apparent dependence of inflation on the cost of energy carriers underscores the need to double investments in green energy. The economist believes that improving the energy efficiency of residential and commercial buildings will help reduce consumer demand and costs.