Households are being hit hard as the cost of living continues to soar at the quickest rate in 40 years. Energy bills have already shot up, but analysts are now predicting that the Ofgem price cap will stretch further - to just under £3,000 - in the autumn.
Meanwhile inflation, now hitting 9.1%, has broken a new record, reaching its highest level since March 1982. The average cost of a supermarket shop has increased and petrol and diesel costs are at an all-time high.
On top of all this, a recession is also looming, a recent report has predicted, and Britain's economy appears to be “running on empty." The latest S&P Global/CIPS flash UK purchasing managers index (PMI) survey shows business expectations suffered the largest monthly decline since the start of the pandemic, with manufacturers and services firms reporting the lowest degree of business optimism since May 2020. Read more:How does a rise in inflation affect house prices in the UK?
Chris Williamson, chief business economist at S&P Global Market Intelligence, said the UK “looks set for a troubling combination of recession and elevated inflation as we move into the second half of the year”, with the cost-of-living crisis ramping up over the months ahead.Read more on manchestereveningnews.co.uk