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UK’s Inflation Crisis Rolls On, Jolted By Energy Shock
The UK's cost of living crisis escalated in April, when consumer prices rose the most since 1982.
The 9% YoY increase was the largest since the Thatcher era. Believe it or not, the headline print was actually "better" than expected. Consensus called for a 9.1% increase. At 6.2%, core was in line.
The National Statistics series began in January 1997. A constructed historical series started in 1989. To get context for April's nosebleed headline print, you have to consult modeled data for prior y
Brexit makes UK inflation worse.
By the way, some time ago I asked if UK mortgages were mostly variable rate. Turns out that is no longer the case – most UK mortgages are now fixed rate.
jyl, that’s true, but there’s important additional nuance.
The Economist ran a great piece two weeks ago on housing and interest rates.
“In some countries mortgage rates may often be fixed, but for a period that is too short to protect borrowers from the interest-rate storm. In New Zealand fixed-rate mortgages make up the bulk of existing loans, but nearly three-fifths are fixed for less than a year. In Britain nearly half the fixed-rate stock is for up to two years.”
https://www.economist.com/finance-and-economics/which-housing-markets-are-most-exposed/21809217
So if higher rates persist, there could be trouble.
Rents in Britain are up 15% YOY.