The U.K.’s annual rate of inflation reached a 40-year high last month, the highest carried by an industrialized nation since the inflationary upswing began last year.
What Happened: The Wall Street Journal analyzed data from the U.K. Office for National Statistics, which reported April’s consumer prices were up 7% from March and 9% from one year earlier. As a result, the nation is experiencing its highest inflation rate since March 1982 – and it is also outpacing the 8.5% annual rate of inflation record set by the U.S. in March.
The onerous inflation rate has weakened the British pound, which dropped 0.6% against the U.S. dollar to $1.2419. As a result, the pound’s losses stretched to more than 8% during the course of 2022.
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What Happens Next: The fraying economy is also taking its toll on the ruling Conservative Party, which recorded significant losses in municipal elections earlier this month. A YouGov opinion poll conducted last week found only 33% of the population supports the Conservative Party, down from 44% recorded in the 2019 national election, while the opposition Labour Party’s support grew from 32% to 38% over the same period.
Prime Minister Boris Johnson, the Conservative Party leader, pledged government support for households struggling during this period, but was vague on exact details.
“We will look at all the measures we will need to take to get people through to the other side,” Johnson said in the House of Commons.
Labour Party leader Keir Starmer questioned Johnson’s competence to handle the issue, stating, “He doesn’t actually understand what working families are going through in this country.”
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