Inflation will be astronomical in UK upcoming year | MENAFN.COM

Monday, 08 August 2022 01:15 GMT

Inflation will be "astronomical" in UK upcoming year


(MENAFN) The United Kingdom is going to see " astronomical " levels of inflation next year, and households would struggle in the face of the persistent cost-of-living problem, according to a research published in The Guardian on Wednesday.

According to a prediction from the National Institute of Economic and Social Research, rising gas and food costs would cause inflation to reach 11 percent by the end of the year (NIESR). According to the official statistics for June, inflation was at 9.4 percent, the highest level since February 1982.

According to Stephen Millard, deputy director of NIESR, there is going to be "no respite" from the "astronomical inflation" affecting British people and corporations, and the Bank of England would need to raise interest rates "up at the 3 percent mark " to reduce it.

According to Millard, the nation is also going to experience a protracted recession and its GDP would decrease for three consecutive quarters.

Currently, the Bank of England base rate is 1.25 percent. In an effort to keep inflation under control, it was raised from 1 percent in June. On Thursday, the regulator is predicted to boost interest rates by an additional 50 basis points, which may make it the biggest single rise since 1995.

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