News

UK inflation rate has hit 10% for the first time since 1982, edged on by food prices soaring

Published

2 years ago

August 17, 2022

THE UK Inflation rate hit a new 40-year high last month, rising above 10% for the first time since 1982 and piling further pain on households already struggling to pay their bills.

Annual consumer price inflation hit 10.1% in July, according to data published by the Office for National Statistics on Wednesday, up from 9.4% in June.

Soaring food prices — up 12.7% since July 2021 — were the largest single contributor to the acceleration in inflation, the ONS said.

The headline inflation number was higher than predicted by a Reuters poll of economists, and food inflation is now running at its highest level in 14 years.

“All the eleven food and non-alcoholic beverage classes made upward contributions to the change in the annual inflation rate, where prices overall rose this year but fell a year ago,” the ONS said.

The largest upward contributions came from bread and cereals, and from milk, cheese and eggs, with notable price increases in cheddar cheese and yoghurts.

On a monthly basis, the consumer price index was up 0.6% in July, compared with no change a year ago.

Higher gasoline and diesel prices, together with rising air fares, were also to blame, the ONS added.

The higher-than-expected reading will keep the pressure on the Bank of England to follow last month’s biggest increase in interest rates in 27 years with further rate hikes despite mounting evidence of the pressure on household budgets and signs that the UK economy may already have entered a recession.

Data published last week showed that the country’s GDP dropped by 0.1% in the second quarter of this year.

And Tuesday’s official labour market report found that paychecks rose by 4.7% between April and June, meaning average incomes fell by 3% during the period once inflation is taken into account — the biggest drop in real wages since the ONS began keeping records more than 20 years ago.

“The situation is miserable for UK consumers, who are currently being squeezed from all sides,” wrote Kallum Pickering, senior economist at Berenberg, in a note to clients. “Wages are not rising fast enough to offset surging inflation, but they are rising too fast for the [Bank of England’s] liking, as it wants to return inflation to target,” he added.

Inflation is forecast to go even higher later this year, driven by further rises in regulated energy bills in October.

Electricity prices have already risen by 54% and gas prices by 95.7% in the 12 months to July 2022 because of rocketing wholesale costs, worsened by Russia’s invasion of Ukraine in late February.

UK government officials are reportedly examining options to provide more support to households.

But Liz Truss, frontrunner to succeed Boris Johnson as next UK prime minister in early September, has yet to set out a detailed plan beyond promising tax cuts.

The opposition Labour Party is calling for a windfall tax on UK oil and gas companies to be extended to help fund a freeze in household heating bills this winter.

Community

Welsh National Scooter Rally gears up for a revival in Tenby

Published

18 mins ago

April 27, 2024

Tom Sinclair

SCOOTER enthusiasts from across the country are set to descend on Tenby for the eagerly anticipated return of the Welsh National Scooter Rally this May Bank Holiday weekend. This marks the event’s grand return to the popular seaside destination for the first time since 2022, promising a vibrant celebration of scooter culture.

Organised by the Scooter Collective South Wales, the rally is expected to draw hundreds to Pembrokeshire’s “jewel in the crown.” Attendees can look forward to a colourful array of scooters lining the historic Tenby High Street, adding a splash of retro charm to the town’s picturesque scenery.

The weekend’s schedule is packed with activities, starting with a scenic ‘ride-out’ from Tenby United RFC on Heywood Lane on Saturday afternoon. This event promises to be a visual spectacle, with a parade of beautifully maintained and creatively decorated scooters cruising through the local area.

Music lovers have plenty to get excited about as well. The Specials Limited, a renowned two-tone tribute band, will be performing at the De Valence Pavilion on Friday night, supported by DJ Steve Foster. Concurrently, the Ex-Servicemen’s Club and Tenby Rugby Club will host rooms dedicated to Northern Soul and Reggae soul, respectively, ensuring that there’s something to suit all musical tastes.

Saturday’s festivities will also feature a customs show and traders fair at the Rugby Ground. This event provides a perfect opportunity for enthusiasts to showcase their scooters and exchange tips and accessories with fellow aficionados.

As the rally winds down, the weekend will conclude with a grand end-of-rally party at the Rugby Club, where participants can celebrate their shared passion for scooters and music, reflecting on a weekend full of fun and camaraderie.

For those planning to attend, the Welsh National Scooter Rally not only offers a chance to revel in scooter culture but also to explore the enchanting town of Tenby.

With its rich history and stunning coastal views, Tenby provides the perfect backdrop for an event that celebrates classic style and community spirit.

Community

Barley Saturday makes a grand return to Cardigan

Published

35 mins ago

April 27, 2024

Tom Sinclair

ON SATURDAY (Apr 27), the historic town of Cardigan in West Wales is abuzz with excitement as it hosts its largest annual event, Barley Saturday. This significant day marks not just a local festival but a vital link to the agricultural roots of the region, attracting spectators from across the country to witness a spectacular parade of livestock and vintage vehicles.

At 2 PM, the main streets of Cardigan transformed into a vibrant parade route featuring the best of rural life—from the supreme stallion, admired by an enthusiastic crowd, to the meticulously prepared parade participants. This parade not only showcases the beauty and strength of these animals but also the care and tradition that continue to thrive in Cardigan.

The event kicked off early with an impressive lineup of agricultural workhorses displayed on the show field. The anticipation built up throughout the day as crowds gathered, lining the streets, eager to catch a glimpse of the gleaming vintage vehicles and the majestic livestock. According to Tudor Harries, the show secretary, “Barley Saturday helps restore the lost link between our community and its agricultural heritage.”

With such a large turnout, local authorities implemented strategic road closures and diversions to manage the flow of traffic effectively. Between 1:30 PM and 4 PM, several main roads were closed, ensuring the parade route remains clear and safe for both participants and spectators. Traffic around the town was slow-moving, indicating the high volume of attendees this year.

Beyond the festivities, Barley Saturday is a day of community and giving. Volunteers play a crucial role in marshaling the event, and bucket collections are conducted throughout the day, with all proceeds going to local charities. This spirit of community service is a testament to the values that underpin Barley Saturday.

Barley Saturday is more than just an event; it’s a celebration of Cardigan’s heritage and a vital part of its cultural calendar. It offers a day filled with joy, community spirit, and a deep appreciation for the rural traditions that are so often overlooked in modern times. As the town enjoys today’s festivities, it also renews its connection to the past, ensuring that these traditions will not be forgotten.

Charity

Peter’s walk for veterans suffering from mental health issues

Published

1 hour ago

April 27, 2024

Tom Sinclair

ON Saturday, March 30, Peter Kraus undertook a 15.6-mile walk from Front Street in Pembroke Dock to Carew Castle to support veterans struggling with mental health issues and PTSD.

Originally believing the route to be 10 miles, Kraus faced a greater challenge than anticipated. He organized the walk through the Combat Stress Site, aiming to raise £1000. “They look after us and keep us safe,” Kraus told The Herald, expressing his effort as a gesture of gratitude towards the veterans.