The National Institute of Economic and Social Research predicts that rising gas and shopping basket prices will translate into inflation of 11% by the end of the year.
Inflation will rise to “astronomical” levels next year, forcing the Bank of England to raise interest rates for an extended period, reports The Guardian, citing a report by the National Institute of Economic and Social Research (NIESR). Will have to be British ‘think tank’.
Gas and food prices, which have been rising steadily, lead to inflation, which, according to various forecasts, could reach 11% by the end of the year. The institute has also predicted that the UK may face a long recession, which will affect the most vulnerable social strata of the country. According to his forecast, the retail price index, which is used to set prices for public transportation and student loans, will reach 17.7%.
NIESR deputy director Stephen Millard argues that there will be “no relief” for British families and businesses when it comes to “astronomical inflation”.
At the same time, according to the report of NIESR, it is expected that Average income down 2.5%Which will force millions of families this winter to use their savings or take costly loans to pay for basic heating and food expenses.
As NIESR director Jagjit Chadha suggests, the next prime minister should “focus economic policy on redistributing resources to the most economically vulnerable households and maintain public services,
The economic crisis in the United Kingdom has worsened, when British Prime Minister Boris Johnson was forced to resign with the adoption of massive sanctions against Russia and the economy in recession after the Covid-19 pandemic and Brexit.