According to data released by the National Bureau of Statistics on Wednesday, British inflation data in May exceeded expectations for four consecutive months, which brought greater pressure on the Bank of England. This week, it will increase the benchmark interest rate for the 13th consecutive time.
Specifically, the British Consumer Price Index (CPI) increased by 8.7%over the same period last year, and expected to be 8.4%.The core CPI annual rate of eliminating the fluctuating food and energy is unexpectedly accelerated from 6.8%to 7.1%.
Grant Fitzner, chief economist of the British Statistics Bureau, said: "In May, the price of air tickets is much higher than usual. The rise in second -hand cars, on -site music activities and computer games is also the reason for the high inflation."
It turns out that Britain's inflation is more long -lasting than other major developed economies. Its overall CPI is the highest in the Seventh Kingdom Group (G7), and its price increase is more than four times that of the 2%target of the British Central Bank.
The OECD (OECD) released earlier this month that the average inflation rate in Britain in 2023 is expected to be 6.9%.The data is not only higher than the average level of the OECD, but also the highest among all major developed economies.In addition, the OECD has raised the forecast of economic growth in the United Kingdom this year and next. It is expected that the British economy will increase by 0.3%this year and will increase by 1%in 2024.
Although the Bank of England expects inflation this year to slow down this year, showing the willingness to suspend interest rate hikes, analysts warned that the Bank of England underestimated the inflation situation, and British Prime Minister Sonak may also be difficult to achieve the goal of lowering inflation by half.
Earlier, the Bank of England had raised interest rates for 12 consecutive times, raising interest rates from 0.1%to 4.5%. It is expected that this Thursday will raise interest rates by 25 basis points to 4.75%.The market has completely digested the expectations of the Bank of Britain to raise interest rates to 5.75%early next year. Economists said that this level will cause Britain to fall into decline.
A economist said: "The situation in Britain is worse than Europe and the United States. The risk of inflation expectations is the highest among developed countries. The British Bank must continue to raise interest rates."
After the release of CPI data, the British Minister of Finance Hunter said: "We will not hesitate to support the Bank of England because they are seeking to squeeze inflation from our economy, and at the same time, it also provides targeted support for life costs to provide targeted support. We know how much high inflation is harmful to families and enterprises across the country. The plan to reduce the inflation rate this year is the best way to maintain low cost and low interest rates. "
