In Britain, the economic shock waves of the war in Ukraine are exacerbating a squeeze on household budgets and heightening fears of a cost-of-living crisis. The British government announced some measures on Wednesday to help people cope with the rising prices, which are at their highest level in three decades, including cutting gas prices.
But the plan, which called for some tax cuts and additional benefits for low-income people, was met with criticism from analysts and opposition lawmakers, who pointed to Britain’s deepening economic woes.
Rishi Sunak, the chancellor of the Exchequer, said the sanctions on President Vladimir V. Putin’s government and the efforts to isolate Russia were weighing on the British economy. This was most acutely felt in the cost of living, he said. Hours earlier, the government reported that inflation was at its highest level since 1992, with prices rising 6.2 percent from a year earlier.
“The actions we have taken to sanction Putin’s regime are not cost free for us at home,” Mr. Sunak told lawmakers as he announced an update to the Treasury’s tax and budget plans on Wednesday. “The invasion of Ukraine presents a risk to our recovery — as it does to countries around the world.”