Things are not looking good for the UK economy.
And it'll be managed by...checks notes...Liz Truss
Balls.
The rise will force the Bank of England to hike interest rates higher and for longer than previously expected, says NIESR
www.theguardian.com
UK inflation will soar to ‘astronomical’ levels over next year, thinktank warns
NIESR said gas price rises and the escalating cost of food would send inflation to 11% before the end of the year while the retail prices index (RPI), which is used to set rail fares and student loans repayments, is expected to hit 17.7%.
Stephen Millard, the institute’s deputy director, said the economy would contract for three consecutive quarters, shrinking the 1% by the spring of next year.
He added there will be “no respite” for British households and businesses from “astronomical inflation” in the short term and “we will need interest rates up at the 3% mark if we are to bring it down”.
As the government faces calls to step in with further support for hard-pressed families, NIESR said average incomes would fall by a record 2.5% this year, leaving millions of families to use savings or expensive credit to pay essential heating and food costs this winter.
In its half-yearly economic health check, the thinktank said the number of households with no savings was set to double to 5.3 million by 2024.
It's so sweet that they think 3% interest rates are high enough to deal with 17% RPI.
Looks like inflation, a recession and an inevitable housing price crash are the results of giving Boris Johnson any responsibility. Which is nice.
