Cost of living crisis is expected to be worse in next coming months for United Kingdom. US based CITI bank economist predicts that the UK’s consumer price could surpass 18.6 % in January 2023 and the last time UK had this kind of inflation which was around 18 % in 1976. The UK office of national statistics came up with a report that said UK’s economy shrank around 11% in 2020, the sharpest contraction in more than 300 years.
Finland had also predicted that its inflation might go peak at 13 % in October 2022. However others like Investment Company Goldman Sachs predicted at 15 % inflation. The cost of energy in UK had been rising due to Ukrain-Russia war since February this year thus wholesale energy price are rising since then. Revised UK energy price cap expected to cause inflation spike. The UK office of Gas and electricity market are expected to announce the October price cap on Friday. The UK CITI bank chief economist said that Bank of England may need to rise the interest rate as high as 7% to deal with inflation.
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