The British economy shrank for the second consecutive month in April due to soaring inflation. Gross domestic product contracted 0.3 percent, data from the British statistics agency show. U.S† This has raised fears that the UK economy could end up in recession.

In April, UK inflation hovered around 9 percent. That is the highest percentage in 40 years. In addition to rising prices, supply chain issues are also hampering business activity in the country.

The British economy already contracted in March, which happened by 0.1 percent. Unlike other months, in April there was a fall in all sectors. The services, manufacturing and construction sectors, among others, contributed negatively.

The Bank of England (BoE) previously warned of a sharp cooling of the economy as a result of high inflation. The central bank said inflation could reach more than 10 percent in the fall. The Bank of England is already raising interest rates to curb high inflation. The bank will make a new interest rate decision later this week.

There is also high inflation in Europe and the Netherlands. In May, life in the Netherlands became 8.8 percent more expensive on average than a year earlier. In April, the average inflation rate in the European Union was 8.1 percent. Estonia and Lithuania lead the way with inflation of 19.1 and 16.6 percent respectively in that month.