U.K. faces threat of 19% inflation.
U.K. faces threat of 19% inflation.
Inflation in the UK can soar as high as 19% next year due to high winter fuel prices, according to new estimates. Could that happen in the U.S.?
It already has, once. The US inflation rate skyrocketed to 18% in 1946 after the government ended the price control and allotment that was imposed during World War II. Inflation also occupied 13% in 1981 during the latest battle from high US inflation.
But almost no economist thinks of U.S. Ready to explode over 10% and reach the early 1980s or post -World War II levels.
Can that happen here? Anything can happen, “said Steve Blitz, a U.S. economist. In TS Lombard based in London. “But will inflation return to two digits? I doubted that. “
For one thing, Britain may face the worst energy deficiency in history. This nation has paid high prices for natural gas, and prices can continue to rise if Russia further limits fuel exports to Britain and Europe during winter.
Pain in Europe worsened with the price of natural gas rising nearly 20% because Russia is ready to close the vital pipe again
Russia, the second largest natural gas producer in the world, has cut supplies to Europe after sanctions are imposed on Russia after the Ukraine invasion.
A Citibank economist in London predicted in a new report that increasing the price of natural gas could encourage UK inflation to 19% in 2023 from the current level of 10%. UK only produces a little natural gas itself.
The US, on the other hand, is natural gas producer No. 1 in the world and has many things available. While prices have risen to the highest level of 14 years, the US is lacking depending on natural gas for warming during winter compared to Europe.
About Author
