The Bank of England’s chief economist has warned that prices will remain stubbornly high and people will have to accept that they will be poorer, despite the government’s promise to reduce inflation in the UK over the coming months. UK government officials have promised to reduce the inflation rate and curb the economic situation, but British Prime Minister Rishi Sunak has clearly stated that people should not expect the government to solve all their problems; In addition, economic challenges will remain the same this year. So what is the current rate of inflation in the UK? Also, what effect has the worsening poverty in the UK had on increased social damage?
Warning of the chief economist of the Bank of England
In his speech, parts of which were widely reported in the British media, Huw Pill said that people and businesses had increased the price of goods and demanded an increase in their wages in the face of the crisis in the cost of living crisis in the UK. He added: “The UK, which is a big net importer of natural gas, is facing a situation where the price of what you’re buying from the rest of the world has gone up a lot, relative to the price of what you’re selling to the rest of the world, which is mainly services in the case of the UK.”
Worsening the economic situation of the British people
The senior Bank of England official added: “So, somehow in the UK, someone needs to accept that they’re worse off and stop trying to maintain their real spending power by bidding up prices whether through higher wages or passing energy costs on to customers.” He stated: “What we’re facing now is that reluctance to accept that, yes, we’re all worse off, and we all have to take our share; to try and pass that cost onto one of our compatriots and saying, ‘we’ll be all right, but they will have to take our share too.”
An unprecedented jump in the inflation index in the UK
He stated that the unprecedented jump in the inflation index in the UK and the rampant increase in living costs had put this country in the worst economic conditions of the last half-century. The UK is the only European country that experienced a double-digit inflation rate in March. According to the latest report of the Office for National Statistics (ONS), the inflation index in the UK has reached 11% from 2% at the beginning of last year, and the BoE has increased the interbank interest rate by 425 points to prevent the situation from worsening.
Double financial pressure on British households
This situation has put significant financial pressure on the mortgage repayments of millions of British households. It is predicted that interest rates will experience another increase before the beginning of the downward trend. On the other hand, energy prices have doubled in the past year, and food prices have increased by 80%, according to official statistics. A British think tank recently announced that food inflation had reached its highest level since 2008 and has added hundreds of pounds to the annual cost of millions of households suffering from the cost of living crisis in the UK.
Research results on the cost of living crisis in the UKÂ
The shocking results of research conducted in the UK show that the number of those forced to skip one of their meals due to the rampant price increase and the cost of living crisis in the UK is increasing. According to Which?’s Consumer Insight tracker findings, one out of every 7 British citizens (15%) has to skip a meal. This figure was 12% three months ago, and its upward trend during a period when according to official inflation statistics, has been decreasing, indicates a worrying situation of worsening poverty in the UK. Which?’s shocking findings also show that one in 10 people (9%) skip meals for other family members.
Reduce consumption to reduce bill costs.
As Britons look for ways to save money, Which’s findings show that 7 in 10 (72%) use less heating on cold winter days. Also, 4 out of 10 people (39%) consume less hot water, and one out of 5 (19%) cooks fewer meals. Meanwhile, one out of every ten people who use the heating system less often says they often or always feel physically uncomfortable.
The inability of the British to pay the cost of living
In the past month, it’s also estimated that about 2.3 million households defaulted on one of their essential living expenses, such as their mortgage, rent, credit card or bills. Approximately 59% of people, or six out of 10 individuals, have either decreased their spending on essential items, sold significant possessions, or dipped into their savings to meet their basic expenses. This represents around 16.5 million households.
Increase in monthly food inflation
According to recent statistical data in the UK, the monthly food inflation rate reached 17.1% in the four weeks ending February 19th. This is a significant turning point and highlights the ongoing cost of living crisis that many individuals and families are facing. The facts of the British research institute Cantar indicate that the inflation index in the UK in the field of food had reached the highest level since 2008 when data was recorded in this field, and if people do not change their shopping habits, 811 pounds ($978) will be added to their annual bills.
Increase in crime due to worsening poverty in the UK.
The research results show that, on the one hand, the number of delinquencies has increased due to the problems caused by the economic crisis and the worsening poverty in the UK. On the other hand, the people of this country have lost their trust in the institutions providing social security. Statistics show that 40% of British people have resorted to installing CCTV cameras, video iPhones, and strengthening building entrances in the face of the current situation and trying to protect their property. About 6% have bought guard dogs for patrolling.
British efforts to protect their property
According to research commissioned by the Democratic Liberal Party, iPhone video is one of the most common security measures. Seven per cent of the people have joined the so-called local watch project, and 2 out of every six households have installed CCTV cameras. Also, one out of 10 families has established a more vital entrance or an alarm. With all these measures, the British prefer not to leave their homes at night for fear of criminals.
The inaction of the social policy in pursuing criminal cases
Official reports indicate that crime rates have experienced a significant jump as a result of the cost of living crisis in the UK. But more important than that is the inaction of the social policy in pursuing such cases, which, according to experts, has made criminals immune from punishment and fueled social insecurity. Statistics show that the police have not followed 200,000 theft cases in the past year. This amount is equivalent to 600 cases of theft in one day, in which the criminals have escaped from justice due to the negligence of the police. According to statistical data, 77% of all theft cases have yet to be solved by the police, and only 6% have been solved.
Experts’ opinion: Poverty is the cause of social damage
Experts attribute the current situation to the consequences of the economic crisis and the worsening poverty in the UK. According to official statistics, 14.4 million people in the UK live in poverty, 29% of whom are children. The Department for Work and Pensions statistics show that four million and 200 thousand children, equivalent to 29% of the population under 18, were in poverty in the year ending April 2022. More than 800,000 children live in families that depend on the food bank for their livelihood.
