The Bank of England issued a warning that elevated food costs will result in a prolonged period of higher prices, as it raised interest rates for the twelfth consecutive time.
The interest rates were increased from 4.25% to 4.5%, reaching the highest level in nearly 15 years, in an effort to combat inflation, the BBC reported.
Bank Governor Andrew Bailey, speaking to the BBC, highlighted the extended duration it is taking for food prices to decrease.
However, he expressed a more positive outlook on the pace of economic growth in the UK, stating that a recession would now be avoided.
The Bank of England has been swiftly raising interest rates in an attempt to curb the rapid increase in the cost of living.
Despite these efforts, inflation in the UK continues to hover near its highest level in four decades and is not declining as anticipated, as prices remain elevated in UK supermarkets.
The lack of a corresponding decrease in prices charged by UK supermarkets, despite a decline in global wholesale food prices, has raised questions and puzzled analysts, as reported by the BBC.
The discrepancy between the global trend and the pricing practices of UK supermarkets has left many wondering about the factors influencing the current situation.
Written by staff