Self-Inflicted? UK Inflation Hits 7% Thanks to Sanctions on Russia
13:06 GMT 13.04.2022 (Updated: 15:18 GMT 28.05.2023)
Britain has been one of the most zealous proponents of sanctions on Moscow, often leading the US, Canada, European Union states, Japan, Australia and New Zealand in imposing measures since Russia intervened in the eight-year conflict in Ukraine on 24 February.
The UK inflation rate hit a 30-year high in March — thanks to sanctions on Russia sending fuel and energy prices soaring.
The Consumer Price Index (CPI) rate shot up from 6.2 percent in February, far exceeding the predicted level of 6.7 percent.
The Office for National Statistics (ONS) said service station pump prices and household bills were the biggest contributor to the seven per cent inflation rate last month.
The average price of petrol rose by 12.6p per litre between February and March, while diesel — the fuel for most farm and goods delivery vehicles which has a knock-on effect on retail prices — jumped by 18.8p. The average prices rise for both fuels was just 3.5p for the same period in 2021.
UK inflation last passed the seven point mark exactly 30 years earlier in March 1992, when it hit 7.1 percent during the worldwide recession — caused in part by the 1990 oil crisis, when prices doubled in three months following Iraq's invasion of Kuwait.
2 March 2022, 16:24 GMT
Britain has been one of the most ardent proponents of sanctions on Moscow, often leading the US, Canada, European Union states, Japan, Australia and New Zealand in imposing measures since Russia launched its special military operation in Ukraine on 24 February.
The UK's declared intention to end gas and oil imports from Russia coincided with energy regulator Ofgem's decision to raise its price control cap on household gas and electricity bills by 54 percent.
Meanwhile the price of natural gas, of which Russia is the world's largest exporter by far, soared to levels last seen in the energy crisis following the unusually cold winter of 2020-21.
Russia has responded to the sanctions, which have seen its oil and gas revenues increase, by demanding "unfriendly" states pay for gas deliveries in rubles instead of US dollars.