Already over 9 percent – Bank of England predicts double-digit inflation rate

The annual rate of inflation in the UK has once again climbed to a higher level.
The results of the statistics office, which were issued in the morning, indicate that the annual rate of increase in consumer prices for the month of May was 9.1 percent, which is the highest pace seen in the last four decades.

In the month of April, there was an increase in costs of 0.7% when measured against the sum for the preceding month.

The Bank of England boosted its benchmark interest rate once again last week, making this the sixth rise in that rate in the previous seven months.

This hike was made in an attempt to alleviate some of the upward pressure that has been placed on prices.

The figure that is currently being used is 1.25 percent.

As a result of this, the rate of inflation needs to return back to the target of two percent that the monetary watchdogs have set over the course of the medium-term and on a foundation that is sustainable.

This aim was created over the course of the last few years.

The Bank of England, on the other hand, forecasts that there will be further price hikes in the near future; for the month of October, for instance, they forecast an inflation rate of 11 percent.