Blow after blow for Boris Johnson as CPI data reveals UK worst off in G7

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According to data published last week by the Office for National Statistics (ONS), inflation, as measured by the consumer price index (CPI), rose from nine percent in April to 9.1 percent last month, a level unseen since February 1982. This leaves Britain at the bottom of the pile of the G7, a fresh blow for the embattled Prime Minister amid ongoing Tory sleaze scandals and growing criticism of the Government’s handling of the cost of living crisis. 

According to the latest CPI data from the Organisation for Economic Co-operation and Development (OECD), inflation across the rest of the G7 in May 2022 was as follows: US – 8.58 percent; Germany – 7.91 percent; Canada – 7.73 percent; Italy – 6.82 percent; France – 5.2 percent; Japan – -0.5 percent.

The cost of living crisis suffered by millions of Britons has reverberated across Europe and the world. The pandemic plunged the global economy into a severe contraction which has been compounded by the ongoing war in Ukraine.

Global economic prospects continue to suffer, with slow economic growth and inflation increasing even for the world’s richest nations, including the UK.

The G7, Group of Seven, is a political forum the UK has belonged to since its inception in 1975. The group consists of the world’s so-called “advanced” economies that dominate global trade and the international financial system, representing around half of the global economic output.

The G7 was joined by Russia in 1998, creating the G8. But this only lasted until 2014, after it was excluded when it annexed Crimea, an autonomous republic of Ukraine. Since Russia’s recent full-scale invasion of Ukraine this year, it would seem unlikely that it would be reinstated to the group.

At a Conservative Party Conference in March, Boris Johnson spoke of the impact of Putin’s war on the cost of living. He said: “The best possible answer, of course, is to make sure that this is the traditional Conservative answer to make sure that we have a strong economy and strong economic fundamentals with well-paid jobs.”

Referring to the G7 and the economy he continued: “And thanks to the speed of [the COVID-19 vaccine] booster rollout, we have the fastest growing economy in the G7.”

But how does the UK really fare amongst the other G7 countries?

Boris Johnson and highest inflation

CPI data reveals UK economy worst off in G7 (Image: Getty Images)

G7 group in Germany

The G7 met in Germany, the War in Ukraine was top on the agenda (Image: Getty Images)

Regarding Mr Johnson’s speech, the UK did actually experience an economic bounce back when the economy grew between 6.8 percent between the third quarter of 2020 and the third quarter of 2021.

This was at a higher rate of expansion compared to other G7 countries.

However, the pandemic hit the UK extremely hard, and the GDP shrank by a record 21.6 percent in the first two quarters of 2020 – far worse than other G7 nations.

In this context, the economic rebound between the third quarters of 2020 and 2021 is not that noteworthy.

In addition to the latest figures revealing that the UK’s inflation rate is the highest in the G7, the most recent data from the IMF report for “World Economic Outlook” found that the UK will be the worst-performing G7 economy by 2023.

And additional recent data from the OECD expects the UK economy to grow by 3.6 percent this year, followed by 0 percent growth next year. That would make the UK the slowest economy in the G7 group in 2023.

Pierre-Olivier Gourinchas, IMF chief economist, said: “What we are seeing is that the UK is facing elevated inflation, and tight monetary policy is weighing down on economic activity this year and next.”

As inflation rates continue to rise, British households are facing the most severe cost of living crisis in the last 40 years amid the soaring costs of energy bills, food, fuel and wages.

READ MORE: ‘Make Brexit look like walk in the park’ IndyRef2 threat to UK economy

Boarded up shops UK

Inflation rose from nine percent in April to 9.1 in May according to CPI data (Image: Getty Images)

Bombed out building in Ukraine

The war in Ukraine and the pandemic have drastically affected the global economy (Image: Getty Images)

Looking back to life in Britain in 1982, the last time inflation stood at 9.1 percent, the Tory Government had been in power for three years, led by Prime Minister Margaret Thatcher.

In those days a loaf of bread cost around 40 pence, a pint of beer a mere 73 pence (around £2 in real-terms conversion today), and the average house price was £24,000.

Today, a sliced loaf of bread is around £1.18, and the average price for a pint of beer is £4.00. Although a pint could set you back as much as £8.00 if you are drinking in the capital.

Unemployment in 1982 hit the three million mark for the first time since the 1930s, compared to 1.3 million unemployed today.

Yet the nature of work has changed since the 80s. The labour market consists of more zero-hour or short-term contracts leading to the notion of a gig economy.

Although this type of work offers flexibility regarding employment hours, it does not provide a guarantee of work and therefore does not offer a stable salary.

Data from Statista found: “In 2021 there were around 917,000 people on zero-hours contracts in the United Kingdom.” This accounts for around one in 35 people.

And according to the ONS, 32 percent of people on zero-hours contracts say they want more hours compared to only nine percent of other people in employment.

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Wages are of course another big concern for a large part of the population as Britain faces an economic crisis not seen in 40 years.

While the biggest railway strike in 30 years started last week with unions calling for wages to keep up with soaring prices Rishi Sunak and Boris Johnson stuck to their guns and stressed the “importance of fiscal discipline.”

The Prime Minister’s official spokesperson said: “The Prime Minister said the public would expect the Government to stick within their means at a time of global cost-of-living pressures.”

After recently losing the two key parliamentary by-elections in Wakefield, and Tiverton, Mr Johnson said: “I have to get on with the job of delivering for the people of this country.”

This comes after the Prime Minister’s reputation took a massive hit after he was found to be holding parties in Downing Street during the Covid lockdowns.

As well as surviving a no-confidence vote where 41 percent of his own MPs voted against him, there are now upcoming plans for Tory rebels to stage another vote of no-confidence

to try to unseat the Prime Minister.

And recent data on the economic impact in the UK shows that the situation is only going from bad to worse.

The Bank of England forecasts that inflation could increase to 11 percent by October with the rise of regulated household energy bills.

This will be when the energy supplier Ofgem next adjusts its price cap to the maximum amount that suppliers can charge customers per unit of energy.





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