UK prices continue to rise, reaching a new 40-year high of 10.1%. According to figures from the UK’s Office for National Statistics, the consumer price index (CPI) rose by 10.1% in the 12 months to September 2022, from 9, 9% in August. The The 10.1% figure reflects the recent high in July.
According to data from the ONS, “higher food prices contributed the most to the rise in the change in the annual HICP and CPI inflation rates between August and September 2022”. The BBC reported that the war in Ukraine had led to an increase in grain prices, also sharing that dairy products had risen by more than 30% in one year.
But what do the relentless price increases mean for British Bitcoin (BTC) and the wider cryptocurrency community? These last months, Sterling trading volumes have soared on exchangeswhile the the pound has almost reached parity with the dollar before the Bank of England takes over the business of impression silver.
Jordan Walker, CEO of UK-based Bitcoin Collective, told Cointelegraph:
“Given the current policies in place by the BoE [Bank of England] and our government, double-digit inflation is quite evident. I feel like this is a red flag for many people in the UK to start to understand why this is happening to our money.
Walker explained that hosting the UK Bitcoin Conference should help teach people “The ‘why’ and offer a solution that we believe is Bitcoin.”
James Dewar, founding partner of UK-based Bridge2Bitcoin, told Cointelegraph: “Inflation has two components. One is the mismatch of supply and demand caused by disruptions such as Covid, Covid responses and war. Normally all we hear about are these events, as politicians claim these are events “out of our control.” Dewar continued, highlighting the undersides of inflation:
“What we hear less about is that the other component of inflation is monetary and that since 2008 governments have encouraged central banks both to buy their debt directly (money printing) and indirectly to induce them to induce banks to increase lending (money printing).
His colleague Simon from a voluntary organization that seeks to help local businesses in the UK reduce payment processing costs by accepting bitcoin told Cointelegraph: “Unfortunately everyone on this planet was born during a period of Government controlled money and this fiat system is now in its agony.
“Mass money printing and Covid lockdowns hastened its demise. Fortunately, Bitcoin emerged as a solution just when humanity needed it. Bitcoin is money for the people, for the people and cannot be controlled by the state.”
Bridge2Bitcoin recently hit the streets of the UK to boost Adoption by Bitcoin merchants – with varying results. In short, bitcoin adoption is growing in the UK, but it’s a slow and rocky journey.
Finally, UK crypto influencer Layah Heilpern, a strong Bitcoin advocate against the CBDCs, reached for Twitter to express his rising emotions:
Breaking: UK inflation is back at 10.1% – a 40-year high!
— Layah Heilpern (@LayahHeilpern) October 19, 2022
Paul Dales, chief economist at Capital Economics, told the Financial Times that the UK will have to get used to rising prices. Dales explained that the inflation rate would remain in double digits well into the new year.