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Newsletter: UK Inflation soars to 30-year high at 7% - what to expect next?
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<p dir="ltr" id="iq1f8i">
<span id="iii7x5">
Fellow Binancians,
</span>
</p>
<p dir="ltr" id="iyvedg">
On April 13th 2022, the UK Consumer Price Index (CPI) for the month of March rose by 7% as reported by the
<a id="iji7w" style="font-family: BinancePlex,Arial,PingFangSC-Regular,'Microsoft YaHei',sans-serif; font-weight: bold; color: #f0b90b;">
Office for National Statistics
</a>
, 0.8% higher than February 2022.
</p>
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<p dir="ltr">
<strong>
What is CPI?
</strong>
</p>
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</td>
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<td align="left" style="font-size: 0px; padding: 5px 5px 0 5px; padding-bottom: 0; word-break: break-word;">
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<p dir="ltr">
The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services (such as food, transportation, and medical care). It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them.
</p>
<p dir="ltr">
In short:
</p>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">
If CPI > positive = inflation
</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">
If CPI < negative = deflation
</p>
</li>
</ul>
<p dir="ltr">
The changes in the CPI are used to assess price changes associated with the cost of living.
</p>
</div>
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</td>
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<div>
<p dir="ltr">
<strong>
What does this all mean?
</strong>
</p>
</div>
</div>
</td>
</tr>
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<td align="left" style="font-size: 0px; padding: 5px 5px 0 5px; padding-bottom: 0; word-break: break-word;">
<div style="font-family: BinancePlex,Arial,PingFangSC-Regular,'Microsoft YaHei',sans-serif; font-size: 14px; line-height: 20px; text-align: left; color: #000000;">
<div>
<p dir="ltr" id="i86ca4">
UK inflation has climbed to a new 30-year high which means increased energy costs, fuel bills and food prices are at their highest in decades. A record surge in fuel prices pushed inflation to 7% in March as consumers felt the impact of the war in Ukraine on living costs, according to the Office for National Statistics.
</p>
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<div>
<p dir="ltr">
<strong>
March 2022 had the highest inflation since 1993
</strong>
</p>
</div>
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</td>
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<td align="left" style="font-size: 0px; padding: 5px 5px 0 5px; padding-bottom: 0; word-break: break-word;">
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<div>
<p dir="ltr">
Per cent change in Consumer Price Index from a year prior:
</p>
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<p dir="ltr">
<span id="docs-internal-guid-48388a7a-7fff-715a-033f-2d2b7bce1b33">
</span>
</p>
<p dir="ltr" id="ic9e9e">
The Consumer Prices Index including owner occupiers' housing costs (CPIH) rose by 6.2% in the 12 months to March 2022, up from 5.5% in February.
</p>
<p dir="ltr" id="ic9e9e-2">
The largest upward contributions to the annual CPIH inflation rate in March 2022 came from housing and household services (1.49 percentage points, principally from electricity, gas and other fuels, and owner occupiers' housing costs) and transport (1.47 percentage points, principally from motor fuels and second-hand cars).
</p>
<p dir="ltr" id="ic9e9e">
On a monthly basis, CPIH rose by 0.9% in March 2022, compared with a rise of 0.2% in March 2021.
</p>
<p dir="ltr" id="ic9e9e-3">
The upward contributions to the change in the CPIH 12-month inflation rate between February and March 2022 came from many categories, with the largest from motor fuels, with no large offsetting downward contributions.
</p>
<p dir="ltr" id="ic9e9e">
The Consumer Prices Index (CPI) rose by 7.0% in the 12 months to March 2022, up from 6.2% in February.
</p>
<p dir="ltr" id="ic9e9e-4">
On a monthly basis, CPI rose by 1.1% in March 2022, compared with a rise of 0.3% in March 2021.
</p>
</div>
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<td align="left" style="font-size: 0px; padding: 5px 5px 0 5px; padding-bottom: 0; word-break: break-word;">
<div style="font-family: BinancePlex,Arial,PingFangSC-Regular,'Microsoft YaHei',sans-serif; font-size: 18px; line-height: 20px; text-align: left; color: #000000;">
<div>
<p dir="ltr">
<strong>
What to expect next?
</strong>
</p>
</div>
</div>
</td>
</tr>
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<td align="left" style="font-size: 0px; padding: 0 5px 0 5px; padding-top: 0; padding-bottom: 0; word-break: break-word;">
<div style="font-family: BinancePlex,Arial,PingFangSC-Regular,'Microsoft YaHei',sans-serif; font-size: 14px; line-height: 20px; text-align: left; color: #000000;">
<div>
<p dir="ltr">
The CPI is one of the most frequently used statistics for identifying periods of inflation or deflation which is the rate at which prices are rising. For example, if the cost of a £1 jar of jam rises by 5p, then jam inflation is 5%.
</p>
<p dir="ltr">
You may not notice low levels of inflation from month to month, but in the long term, these price rises can have a big impact on how much you can buy with your money. As such, consumers might look at moving their wealth into other alternative investments to negate the effects of relatively high inflation.
</p>
<p dir="ltr">
Some crypto industry experts argue Bitcoin may act as a perfect hedge as it can be uncorrelated to traditional markets and asymmetric in return over long periods of time due to its deflationary nature. However, other traditional industry experts argue that Bitcoin is a highly volatile and speculative asset that makes it a risky investment if you don’t understand the cryptoasset market. At the time of this email, Bitcoin is at $40,102.84.
</p>
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here
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UK Inflation soars to 30-year high at 7% - what to expect next?
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