UK inflation continues to rise precipitously

CPI annual rate, all items 2015=100

1 June 2022 9.4%

8%

6

4

1

2

3

2

5

4

0

-2

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, all items 2015=100

1 June 2022 9.4%

8%

Covid-19

Pandemic causes worst economic downturn since Great Depression

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

6

4

2

0

Interest rates

Gordon Brown hands control of setting rates to Bank of England

2008

financial crisis

-2

1985

1990

1995

2000

2005

2010

2015

2020