quite simply they are doing this because of inflation and the rate of price increases and the international comparisons are clear, although inflation is falling, in the uk it is not falling by as much or down to as low a level as it is elsewhere in europe in the us, and the us, and the bank has been talking up food prices and the amount we pay for services and the speed that wholesale, lower wholesale prices are being passed through the supply chain to us. the bank talked about crystallising risks, essentially the fear that when it comes to private sector wage growth, rings might be becoming embedded so they argued they needed to continue acting despite the impact it will have on households and businesses and we know the impact it will have on uk households and mortgage holders and also those ran singh. also a warning from the bank also those renting. they said the rates will be high for a while, they are expecting inflation to meet the target of the prime minister, to
our reporter ben king has the details. when drinkers gather at london s king charles pub this evening, there will be a new tax regime in place. changes announced in march come into effect today taxing stronger drinks more and weaker drinks less. at the same time, alcohol duties rise with inflation up by io.i%. the result a complex series of changes. 12% sparkling wine will be i9p cheaper as higher rates for fizz are abolished. a can of pre mixed gin and tonic will be 5p cheaper. but a bottle of 12% still wine will rise 44p. a bottle of vodka up 76p and a bottle of 20% port up £1.30. so among drinkers, there will be some winners and losers. but the wine and spirits industry, which sees many of its products hit with higher taxes, says customers will see higher prices and less choice. we have the biggest duty increase in almost 50 years at the same time as we have inflation rife and a cost of living crisis. on top of that, we have raw materials like glass that are increas
and in the euro area, where wholesale energy prices feed through more directly to consumer prices. where there is more uncertainty is around the time it will take the other non energy components of the consumer price of consumer price inflation to come down as well. price inflation for food and non alcoholic beverages has been very high, but it does appear to have peaked. and as you can see in this chart, there are signs in the monthly figures that it has started to ease. and evidence collected by the bank s regional agents suggests that a moderation in food inport prices is being passed through the supply chain to consumer prices. so we do expect that food price inflation will come down gradually over the rest of this year. the shadow chancellor has said the interest rate rise we ve seen today is another hammer blow to families who are seeing their mortgages increase. rachel reeves said that the government needs to force the banks and lenders to do more to mortgage holders
pain it also causes. the background to this is high inflation, we have a sequencing that around the world, particularly sticky, or at least has been here in the uk. that is why the bank has been increasing interest rates to try and curb the spending and get that inflation rate down. should they continue to do that today, on the one hand, we have an inflation rate in the uk that has been easing a little, and when you dig into some of the details, to look at producer price inflation, thatis look at producer price inflation, that is further down the supply chain, that is the price is that manufacturers and factories might be paying, suggestions are it could be coming down quite significantly now. on the other hand, headline inflation, 7.9%, still four times the bank of england s 2% target. when you strip out energy and food, which can be equally volatile core inflation, they are still not falling by enough, wage growth remains quite high as well, and then there are wage comparis
responsibility for the fact that inflation in the uk is much higher than it is in comparable countries. in the us, it is 3%. in the eurozone it is 5.3%. and yet, here in britain, inflation remains stubbornly at 7.9% because of a decade or more of mismanagement by the conservative party. let s talk to our work and money reporter peter ruddick. what does this mean for people with mortgages? it what does this mean for people with mortua . es? . , what does this mean for people with mortua . es? ., , , what does this mean for people with mortauaes? , , . mortgages? it was widely expected but unfortunately mortgages? it was widely expected but unfortunately that mortgages? it was widely expected but unfortunately that will - mortgages? it was widely expected but unfortunately that will not - but unfortunately that will not prevent the pain from hurting. let s break this down, for people on a variable or a tracker rate mortgage, which tracks the bank of england base rate, they