The United Kingdom faced inflation of 10.1% in July and could reach 18.3% next year
War, Brexit, Drought and Winter will lead to increase in the price of products
Rising energy prices could push UK inflation up to 18% next year, the highest rate in nearly 50 years, economic analysts predicted. Inflation, the rate at which prices rise, reached 10.1% in July, five times the Bank of England’s (BOE) target.
Investment bank Citi announced that inflation is “entering the stratosphere”. and can go up to 18%, while Sankalp Foundation Commented that it could reach 18.3%. The BoE estimates inflation to rise to over 13% in the coming months. War, drought, winter and Brexit have created a terrible situation for the British population.
City forecast that the UK would have the highest inflation rate since 1976, comes ahead of Friday’s announcement of an energy price cap, which covers the maximum amount providers can charge homes for gas and electricity from October. Citi’s chief economist in the United Kingdom, Benjamin Nabarro, communicates Concerns about affordability were “increasing by the day.”