UK inflation matches US, soars to highest point in 40 years

Fox Business Flash top headlines for May 18

Check out what’s clicking on FoxBusiness.com.

Inflation in the U.K. hit its highest point in 40 years Wednesday, matching the U.S. economy that hit its own 40-year in March.

U.K. consumer price inflation hit 9% for the first time since 1982 in April, according to a Wednesday release from the Office for National Statistics. Britain's inflation is the highest of any major European economy, and surpasses even America's 40-year record high of 8.5% inflation from March.

BANK OF AMERICA ANALYSTS SLASH S&P 500 PROJECTIONS AS 'SPECTER OF RECESSION' LOOMS

U.K. Finance Minister Rishi Sunak is facing pressure to assist households and keep the Bank of England's interest rates high despite the inflation.

"We cannot protect people completely from these global challenges but are providing significant support where we can, and stand ready to take further action," Sunak said Wednesday, according to Reuters.

President Joe Biden has faced similar struggles in the U.S., saying that lowering inflation is his top economic priority. Biden made the statement on Twitter after news broke that the U.S. hit 8.3% inflation in April, hovering near the 40-year high the country hit in March.

The Labor Department released its measurement of the consumer price index last week. The CPI is an aggregate measurement of everyday good including groceries, gasoline, and rents.

BIDEN ADMIN TO REMOVE FIVE EXTREMIST GROUPS FROM TERROR WATCH LIST

Food in particular rose 1% over its inflation in March. It was the 17th month in a row that food costs have inflated.

Prior to the CPI report, Biden delivered a speech blaming the inflation crisis on both the COVID-19 pandemic and Russia. Russian President Vladimir Putin's response to Western sanctions against his invasion of Ukraine has raised gas prices in the U.S. Biden has committed to release 1 million barrels of oil from the country's strategic reserve for the next six months to offset the rising cost of gas.

CLICK HERE TO GET THE FOX NEWS APP

Biden also blasted "ultra-MAGA" Republicans, claiming the party doesn't have their own plan to fight inflation. He went on to say that his administration has only failed to address inflation due to Republican opposition in the Senate. The Senate is currently split 50-50 between Republicans and Democrats, and Vice President Kamala Harris would wield the deciding vote in a tie.

Source: Read Full Article