UK warned of astronomical inflation next year

RT.com
04 Aug 2022, 13:43 GMT+10

A long recession is also coming, a think tank warns

Inflation in the UK will reach "astronomical" levels next year, and households will continue struggling amid the ongoing cost-of-living crisis, The Guardian newspaper reported on Wednesday, quoting a leading think tank.

Rising gas and food prices will send inflation to 11% before the end of the year, according to an estimate from the National Institute of Economic and Social Research (NIESR). The official figures for June put the inflation at 9.4%, the highest level since February 1982.

There will be "no respite" for British households and businesses from "astronomical inflation," and the Bank of England will need to hike interest rates "up at the 3% mark" to bring it down, the Guardian quotes NIESR deputy director Stephen Millard as saying.

The country will also see a long recession and the economy will contract for three quarters in a row, Millard added.

The Bank of England base rate currently stands at 1.25%. It was increased from 1% in June in an attempt to control inflation. The Bank of England is expected to hike interest rates by another 50 basis points on Thursday in what may become its largest single increase since 1995.

For more stories on economy & finance visit RT's business section

(RT.com)

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Birmingham News.

More Information

null in null

Business

Section

Tech stocks slide, industrials surge on Wall Street

NEW YORK, New York - Global stock indices closed with divergent performances on Tuesday, as investors weighed corporate earnings, central...

Canada-US trade talks resume after Carney rescinds tech tax

TORONTO, Canada: Canadian Prime Minister Mark Carney announced late on June 29 that trade negotiations with the U.S. have recommenced...

Lululemon accuses Costco of selling knockoff apparel

Vancouver, Canada: A high-stakes legal showdown is brewing in the world of athleisure. Lululemon, the Canadian brand known for its...

Shell rejects claim of early merger talks with BP

LONDON, U.K.: British oil giant Shell has denied reports that it is in talks to acquire rival oil company BP. The Wall Street Journal...

Wall Street extends rally, Standard and Poor's 500 hits new high

NEW YORK, New York - U.S. stock markets closed firmly in positive territory to start the week Monday, with the S&P 500 and Dow Jones...

Canadian tax on US tech giants dropped after Trump fury

WASHINGTON, D.C.: On Friday, President Donald Trump announced that he was halting trade discussions with Canada due to its decision...

United Kingdom

Section