New Times,
New Thinking.

  1. Chart of the Day
17 August 2022

The UK’s inflation rate is higher than any other G7 country

Britain is the only major Western economy in which inflation has hit double digits.

UK inflation has hit a 40-year high, according to data released today by the Office for National Statistics. The Consumer Price Index (CPI), which measures the change in the price paid for a representative basket of goods, reached 10.1 per cent in July, driven by the rising cost of food and energy.

The UK’s inflation rate is currently higher than any other G7 country. It is the only economy among this group in which inflation has hit double digits.

While other wealthy nations have also been hit by high inflation (the CPI was 7.5 per cent in Germany and 8.5 per cent in the US in July), both countries saw slight declines in the last month compared with June. The Bank of England, however, predicts that inflation in the UK will continue to rise for the rest of this year before falling in 2023. The energy price cap, which is forecast to increase from £1,971 to £3,600 in October is one factor driving the expected rise.

The UK imports much of its energy and is highly exposed to price rises in gas and oil, which have been exacerbated by the war in Ukraine. While the British government is supporting consumers through discounts on energy bills, other countries have taken more direct measures. In France, which has a high supply of nuclear energy and a state-owned supplier (EDF), the government has capped electricity price rises at 4 per cent. Pandemic-related impacts on UK trade, which have been exacerbated by Brexit-related costs and delays, have further contributed to inflation.

[See also: UK inflation may have fallen, but the cost-of-living crisis is far from over]

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.

Content from our partners
Peatlands are nature's unsung climate warriors
How the apprenticeship levy helps small businesses to transform their workforce
How to reform the apprenticeship levy