This week is all about Inflation, Inflation, Inflation!
On Wednesday the ONS released its latest CPI figures showing that UK inflation was now at 9%.
This is the highest rate in 40 years and is alarming for the Bank of England, who are committed to keeping the rate at just 2%.
The UK Government is coming under increasing pressure to take more direct action to stave off some of the worst effects for the millions of people in the UK who are being adversely affected by rising prices.
On Wednesday respected journalist and commentator Martin Lewis reflected that the crisis could cause ‘civil unrest’ and yesterday the Chief of the Police Inspectorate watchdog suggested that officers should use ‘discretion’ when arresting people accused of petty theft of basic food stuffs.
Facing the UK Treasury Select Committee this week, the Governor of the Bank of England gave a stark ‘apocalyptic’ warning about food prices, suggesting inflation and the ongoing Ukraine crisis could see them increase even more dramatically.
To round a week of difficult economic news up, new consumer confidence figures were released today showing them sitting at the worst levels since records began back in the 1970’s.
Despite this, the Pound has actually made an improvement of a couple of points on its position against the US dollar at the end of last week.
Against the Euro, Sterling has seen little movement and ends the week where it began.
In more positive news this week to wrap up the update, HM the Queen (in honour of her Platinum Jubilee) announced the creation of eight new cities.
They are as follows:
Stanley (Falkland Islands), Douglas (Isle of Mann), Bangor (Northern Ireland), Milton Keynes, Doncaster, Colchester, Dunfermline and Wrexham.