Inflation has been on the rise for a really long time now, and this doesn’t seem to be getting better at all. Check out the latest terrifying reports coming from Bank of England.
NEW: Bank of England warns that inflation could hit 10% resulting in “apocalyptic” consequences this year.
HODL #bitcoin ✊
— Bitcoin Magazine (@BitcoinMagazine) May 17, 2022
Someone commented: “I’m paying WAY more than 10% inflation on gas, groceries, housing. It’s more like 20-30% and that’s just within a year. Who are these financial wizards who come up with these magical numbers?”
Another follower hopped in the comments and said: “#Bitcoin is money of the future with predictable diminishing inflation. Markets are pricing in a lot of things all the time, short and long term, but both adoption and price of Bitcoin has been steadily increasing about 100%/year on average.”
Criticizing the approach of the Bank of England
Former Bank of England governor Mervyn King has criticized its approach amid a cost-of-living crisis, calling for a hike in interest rates to show a “strong, clear signal now”.
Lord King, who was governor during the 2008 financial crisis, told LBC radio:
“I think the big challenge is they’ve got to demonstrate that they realise the need now is to give a very strong signal that they’re focusing on bringing inflation down.”
He pointed to the Bank’s estimate that inflation will soar above 10% this year, and added:
“The idea that interest rates of 1% are going to have much impact on the inflation rate is really very strange.”
As the UK Finance reveals, Lord King said it was “predictable” that inflation would be caused by the coronavirus response of quantitative easing. It’s been also due to the introduction of new money into the system by the central bank.
The rising inflation is 2022
Inflation keeps rising, and this is getting worse in 2022 amidst the times of war that we’re living in. As you probably know by now, the tensions between Russia and Ukraine are only getting stronger, and this is affecting the whole world economy.
America’s inflation is also surging, and it’s inflicting a lot of pain on household budgets all over the country. On the other hand, it’s also important to note that not everyone is affected in the same way, according to an interesting article shared by CNN. The economic data shows the general trend of prices, but it does not tell the story of individual groups.
These are the times when people are advised to hold their digital assets.