The last time UK inflation hit 9% was in 1982

CPI annual rate

9%

1 April 2022

8%

6

4

1

2

5

3

2

4

0

1990

2000

2010

2020

1. Black Wednesday – UK government forced to take sterling out of European exchange rate mechanism.

2. Interest rates – Gordon Brown hands control of setting rates to Bank of England.

3. 2008 financial crisis.

4. Brexit vote – Result prompts sharp fall in sterling, leading to rise in inflation as imports become more expensive.

5. Covid-19 – Pandemic causes worst economic downturn since Great Depression.

CPI annual rate

9%

1 April 2022

8%

Black Wednesday

UK government forced to take sterling out of European exchange rate mechanism

Brexit vote

Result prompts sharp fall in sterling, leading to rise in inflation as imports become more expensive

Covid-19

Pandemic causes worst economic downturn since Great Depression

6

4

2

Interest rates

Gordon Brown hands control of setting rates to Bank of England

2008

financial crisis

0

1985

1990

1995

2000

2005

2010

2015

2020