Bank of England Interest Rate Hike to Fuel Cost-of-Living Crisis

The Bank of England's decision to increase interest rates is expected to worsen the cost-of-living crisis in the UK. Despite economists predicting a decrease, inflation rose by 0.3% to 2.9% last month. The main culprit behind this rise is food prices, which did not fall as they usually do during the summer.

The household energy price cap will increase by around 13% this autumn. Additionally, the ongoing conflict between Iran and Donald Trump's administration has led to high petrol and diesel prices, which are expected to remain high for a while.

The drought in the UK and other parts of Asia due to El Nino is also expected to exacerbate food shortages, driving up food prices further. This will likely have severe impacts on the global economy.