AUS
NZ
UK
CA
USA
IND
Highlights
- UK inflation levels have surpassed the 10% mark for the first time in a span of 40 years.
- The last time inflation levels in the UK were this high was in February 1982.
- UK has the highest inflation among all G7 countries.
The ongoing cost of living crisis in the UK is deteriorating by the day. Owing primarily to the surging costs of fuel and food, inflation levels in the country have surpassed the 10% mark for the first time in a span of 40 years. According to the latest figures published by the Office for National Statistics, the consumer prices index (CPI) has now shot up to 10.1% in July from 9.4% in the year to June. It was anticipated that inflation levels would hit double digit growth in the near future, but this jump has taken place earlier than expected.
The last time inflation levels in the UK were this high was in February 1982. The 10% threshold has been flouted four times over the past 70 years, with the other periods in addition to the current one and 1979-82 being 1973-77 and 1951-52. The latest figures outstripped the 9.8% estimate of City economists, owing to the food and drink prices soaring at the greatest rates seen since 2008 amidst an inflationary explosion across the UK economy.
©2022 Kalkine Media®
Food inflation has become the biggest concern, hurting the least well-off section of people more, as they spend a disproportionate amount of their overall incomes on food and other necessities. Cereals and bread, vegetable, dairy, and meat saw the highest price hikes, which led to a surge in take away costs and created record high increases in hotels and restaurants prices. The soaring inflation was also driven by other essential items, which include toilet rolls, pet food, deodorants, and toothbrushes.
Food inflation has become the biggest concern, hurting the least well-off section of people more, as they spend a disproportionate amount of their overall incomes on food and other necessities. Cereals and bread, vegetable, dairy, and meat saw the highest price hikes, which led to a surge in take away costs and created record high increases in hotels and restaurants prices. The soaring inflation was also driven by other essential items, which include toilet rolls, pet food, deodorants, and toothbrushes.
In addition to food, fuel prices have also been rising at a much higher rate than the overall inflation rate. Alcohol and cigarette prices have also been going up at a higher rate lately. With the summer rush peaking, travel costs and costs of packaged holidays have also been surging across the country. With the revelation of the new inflation figures, the government and Conservative leadership candidates, Liz Truss and Rishi Sunak, are under immense pressure to fully understand the scale of the inflationary problem and act swiftly.
While the government is allegedly not doing enough to solve the crisis, people are scared that the upcoming winter would be the extremely rough and they would struggle to fill their bellies and stay warm amid the soaring food and energy bills. This autumn, energy regulator Ofgem is expected to go for another price cap hike, further deteriorating the condition of households struggling with high energy bills. The Bank of England (BoE) believes that the energy price cap hike would push the inflation levels further up to 13%, which could be disastrous for the economy.
With the highest inflation level among all the G7 countries, the UK is headed towards an inflationary catastrophe. As the cost of living is continuously rising, the economic outlook for the country is darkening, and the consumer confidence is falling. Amid the current turmoil, Brits can still protect and grow their money by investing in the stock market. Let’s look at 10 stocks suggested by Kalkine Media® that UK investors can buy to strengthen their portfolio amid rising inflation.
Rio Tinto plc (LON: RIO)
The Rio Tinto plc’s shares were witnessing a minor rally by 0.95% at 1:48 PM (GMT+1) on Thursday, while trading at GBX 4,935.00. The Anglo-Australian mining giant was enjoying a market cap of £61,076.05 million and has given a positive return of 1.02% to investors on YTD (year-to-date) basis as of 18 August, while its one-year return stands in the negative zone, at -9.81%. The annual dividend yield offered by Rio Tinto stands at a whopping 11.6%, along with a huge EPS of 13.03.
Diversified Energy Company plc (LON: DEC)
The leading oil and gas producing enterprise, Diversified Energy Company plc, was up by 1.38% at 1:54 PM (GMT+1) on Thursday, while trading at GBX 139.90. The FTSE 250 constituent presently holds a market capitalisation of £1,174.33 million and has given positive returns to investors on both YTD and one-year basis, which stand at 34.05% and 32.31%, respectively. The annual dividend yield offered by Diversified Energy Company stands at 10.2%, but its EPS stands in the negative zone, at -0.03.
M&G plc (LON: MNG)
The shares of the worldwide operating corporation engaged in investment management, M&G plc, were down by 2.57% at 1:57 PM (GMT+1) on Thursday, while trading at GBX 208.40. The FTSE 100 constituent presently holds a market capitalisation of £5,411.66m and has given a positive return of 4.41% to investors on YTD basis as of 18 August, while its one-year return stands in the negative zone, at -5.40%. The annual dividend yield offered by M&G stands at 8.6%, along with a positive EPS of 0.44.
Phoenix Group Holdings (LON: PHNX)
The shares of the leading savings and retirement focused company, Phoenix Group Holdings, were down by 0.12% at 2:01 PM (GMT+1) on Thursday and was trading at GBX 666.80. The FTSE 100 constituent presently holds a market capitalisation of £6,676.24m and has given positive returns to investors on both YTD and one-year basis, which stand at 2.13% and 1.08%, respectively. The annual dividend yield offered by Phoenix Group stands at 7.4%, along with a positive EPS of 0.09.
Imperial Brands plc (LON: IMB)
The shares of the UK-based tobacco producing giant, Imperial Brands plc, were up by 0.81% at 2:04 PM (GMT+1) and was trading at GBX 1,929.50. The FTSE 100 constituent presently holds a market capitalisation of £18,190.81m and has given positive returns to investors on both YTD and one-year basis, which stand at 19.01% and 20.79%, respectively. The annual dividend yield offered by Imperial Brands stands at 7.3%, along with a positive EPS of 3.00.
Chesnara Plc (LON: CSN)
The shares of the pensions consolidator based in Europe, Chesnara Plc, were up by 1.43% at 2:15 PM (GMT+1) on Thursday, while trading at GBX 318.50. The company presently holds a market capitalisation of £471.49m and has given positive returns to investors on both YTD and one-year basis, which stand at 11.75% and 15.82%, respectively. The annual dividend yield offered by Chesnara stands at 7.2%, along with a positive EPS of 0.53.
BlackRock World Mining Trust plc (LON: BRWM)
The shares of the investing firm engaged in mining and metals, BlackRock World Mining Trust plc was up by 0.16% at 2:18 PM (GMT+1) on Thursday. The BRWM was trading at GBX 611.00 and this FTSE 250 constituent held a market cap of £1,151.39 million and has given positive returns to investors on both YTD and one-year basis, which stand at 4.00% and 2.09%, respectively. The annual dividend yield offered by BlackRock World Mining Trust stands at 7%, along with a positive EPS of 1.06.
Bank of Georgia Group plc (LON: BGEO)
The shares of the leading universal banking group, Bank of Georgia Group plc, were up by 2.84% at 2:20 PM (GMT+1) on Thursday, while trading at GBX 2,030.00. The FTSE 250 constituent presently holds a market capitalisation of £963.91m and has given positive returns to investors on both YTD and one-year basis, which stand at 21.65% and 33.15%, respectively. The annual dividend yield offered by Bank of Georgia Group stands at 6.9%, along with a huge EPS of 15.22.
NewRiver REIT Plc (LON: NRR)
The shares of the UK-based company investing in real estate, NewRiver REIT Plc, were trading at GBX 87.00 at 2:24 PM (GMT+1) on Thursday. The company presently holds a market capitalisation of £268.60m and has given a positive return of 4.32% to investors on one-year basis as of 18 August, while its YTD return stands in the negative zone, at -1.25%. The annual dividend yield offered by NewRiver REIT stands at 6.8%, but its EPS stands in the negative zone, at -0.49.
British American Tobacco plc (LON: BATS)
The shares of the cigarette producing group based in the UK, British American Tobacco plc, were down by 0.03% at 2:28 PM (GMT+1) on Thursday, while trading at GBX 1,929.50. The FTSE 100 constituent presently holds a market capitalisation of £3,439.50m and has given positive returns to investors on both YTD and one-year basis, which stand at 25.85% and 27.29%, respectively. The annual dividend yield offered by British American Tobacco stands at 6.3%, along with a positive EPS of 2.97.
