Daily Management Review

The Only Major Economy Which Still Has Rising Inflation Is Britain


The Only Major Economy Which Still Has Rising Inflation Is Britain
According to information provided by the Organisation for Economic Cooperation and Development, the United Kingdom is the only one of the wealthy Group of Seven countries where inflation is still increasing.
According to the Paris-based organisation, annual inflation in the G7 decreased to 4.6% in May from 5.4% in April and at its lowest point since September 2021.
The majority of advanced economies experienced a downward trend in May, with annualised inflation edging down in the United States, Canada, France, Germany, Italy, and Japan.
However, it was discovered that Britain was an anomaly.
The OECD reported that consumer price inflation in the United Kingdom increased to 7.9% overall in May from 7.8% in April.
Even while inflation is still high, many major central banks are beginning to think about ending their aggressive interest rate increases as prices decline.
The Bank of England raised interest rates by 50 basis points to 5% last month, which was a bigger increase than many anticipated. The base rate has increased for the 13th time in a row, reaching its highest level since 2008.
The action, which increased worries about a mortgage meltdown, distinguished it from other significant central banks that had been able to either slow down or halt interest rate increases.
Consumer price index data shows that annual inflation decreased significantly from 7.4% in April to 6.5% in May.
It indicates that overall inflation in the OECD has reached its lowest point since December 2021.
The Netherlands, Norway, and the United Kingdom were the only nations where the OECD reported that inflation rose between April and May.
According to the OECD, inflation rates varied across all member nations, falling below 3% in Costa Rica, Greece, and Denmark and exceeding 20% in Hungary and Turkey.
However, core inflation, which includes volatile food and food prices, continued a previous trend and fell at a considerably slower rate across 33 OECD nations. It dropped from 7.1% in April to 6.9% in May.
Energy inflation, meanwhile, was found to have fallen to -5.1% in May from 0.7% in April when compared to the prior year.