With the rise of inflation in the United Kingdom to the largest scale the country has ever witnessed, which lifted the exacerbating price crisis, it was agreed to raise interest in the British Central Bank to confront high prices and inflation, for fear of banks falling into bankruptcy.

Editing | Scarlett Watson

Department of economics news
March 23, 2023 - London

Analysts for the British newspaper, The Guardian, expected that the Bank of England (the British central bank) would announce an interest rate hike later today, Wednesday, despite the suffering of citizens.

After the calm, the inflation rate rose again in Britain, surprisingly rising to 10.4% in February, according to British National Statistics Office data published by The Guardian newspaper today, Wednesday.

Rising food prices were behind the recent jump in inflation in Britain, along with a rise in alcohol prices in pubs and restaurants after prices fell in January. The rate of inflation of food and non-alcoholic beverages rose to a record high of 18%, the highest level in 45 years.

This rise in the inflation rate is expected to increase the suffering of poor families who spend most of their income on living necessities. And after there was hope in Britain for millions of families groaning from the high cost of living that prices would decline to normal after witnessing the worst living crisis during the past year, the unexpected increase in the inflation rate last February thwarted these hopes.

According to analysts, the sudden increase in inflation for the month of February will complicate matters for the Bank of England in particular, which is fighting inflation by raising interest rates on the British pound.

Financial markets have been betting in recent days that the banking crisis may tempt the British central bank to back down from further interest rate hikes, but an additional rise in borrowing costs is increasingly likely.