Financial Times' front page reported that UK inflation unexpectedly rose, creating the largest gap with Eurozone inflation in two years. At the same time, the UK's fiscal situation is severe, and tax increases have become an inevitable choice, with the British people living in dire conditions.
The UK's inflation rate rose to 3.8% in July, mainly driven by the following factors:
1. Increase in transportation costs
Prices for transportation services such as air tickets and hotels fluctuated significantly, especially hotel prices during Oasis' rock band tour increased sharply, becoming a direct cause of the acceleration in inflation.
2. Rise in food prices
Prices for food and non-alcoholic beverages rose by 4.9% year-on-year, reaching the highest level since February 2024, mainly due to rising fuel costs.
3. Increase in fuel and electricity costs
Energy prices such as gasoline and electricity continued to rise, further pushing up the overall inflation level.
4. Policy impact
The UK central bank expects inflation to peak at 4% in September, but the chancellor of the exchequer said "there is still a lot of work to be done in stabilizing living costs."
Original source: www.toutiao.com/article/1841011704164352/
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