LONDON (CU)_Before Russian President Vladimir Putin sent his troops into neighbouring Ukraine in late-February, inflation in the United Kingdom was already at a record-high of 5.5 per cent. Now, with oil and gas prices on the rise, economists warn that the conflict will add inflationary pressures on consumer earnings.
The Resolution Foundation says that the ongoing dramatic increase in global oil and gas prices are set to push inflation in the UK above 8 per cent this spring. Average incomes across the country will fall by 4 per cent in the coming financial year, as a result, which would amount to a hit worth £1,000 (US$1,317) per household, the biggest annual decline since 1975. Although Russia supplies for about 5 per cent of UK’s gas imports, fears over supply restrictions as a result of the escalating conflict have hiked global wholesale prices. On Monday, oil prices jumped to $139 a barrel, before falling back to about $125.
Against this backdrop, the Resolution Foundation expected inflation in the UK to exceed…
