The UK's GDP = Gross Domestic Product growth rate from April to June this year was -0.1% compared to the previous three months, marking the first negative growth in five quarters.


Record inflation has adversely affected broad economic activity.

The British Bureau of Statistics announced on the 12th that the GDP growth rate from April to June was -0.1% compared to the previous three months, the fifth quarter since January to March 2021. It was the first negative growth.



The annualized rate is -0.3%.



The reason for this is that personal consumption for clothes, food, restaurants, etc. has decreased by 0.2% compared to the previous three months due to record inflation, and the new corona restrictions have been lifted from this spring. Related government spending, such as testing for the virus, fell by 2.9%.



In the UK, energy prices soared against the backdrop of Russia's invasion of Ukraine and other factors, and the consumer price index in June was 9.4%, the highest level in 40 years.



The central bank, the Bank of England, is strengthening monetary tightening, predicting that the price increase rate will exceed 13% from October to December and that the economy will enter a recession within the year.



However, it has been pointed out that a rapid interest rate hike could lead to an economic downturn.