Winning Bizness Desk

Mumbai. If you think that inflation is troubling only in India, then rethink. The orgy of inflation is at its peak even in developed countries and even Britain's inflation rate has risen to 10.1% in July. And this had not happened in the 40 years before that. Food prices in the UK are rising faster than in the United States and in Europe, increasing people's cost-of-living. Besides, the ever-increasing price of fuel has worked to sprinkle salt on the wounds. The Office for National Statistics said on Wednesday that the double-digit growth rate in consumer prices a year ago was higher than expected. That was higher than analysts' forecast of 9.8% and an annualized rate of 9.4% in June. This increase has been mainly due to rising prices of food and other essential items, including toilet paper and toothbrushes.

Recession expected by 2023

Most economists believe that the time to come will be worse. The Bank of England says a hike in natural gas prices could push consumer price inflation to 13.3% in October. The bank says that will push Britain into a recession, which is expected to last until 2023. Due to fears of recession, this month the central bank increased its key interest rate by 0.50 percent. This is the biggest of six consecutive increases since December. The rate now stands at 1.75%, the highest since the global financial crisis at the end of 2008. "We expect another 50bps (basis point) increase in September... we won't rule out another hike in November," said James Smith, a well-versed economist with developed markets.

Fuel crisis in western countries

Energy prices around the world have skyrocketed since Russia's invasion of Ukraine, causing inflation in many countries. In retaliation for Ukraine's support from the West, Russia has cut natural gas shipments to Europe. The effect of this is that there has been a crisis of fossil fuels, which power factories and heat homes in winter.