Economists predict that inflation will jump to 9% this week as the cost of living for households continues to rise
Economists predict that inflation will jump to 9 percent this week as the cost of living for households continues to rise.
April inflation figures will be released on Wednesday, with forecasts showing a significant increase in the March rate of 7 percent.
This additional blow to families will be dealt with growing frustration among high-ranking Tory MPs, who have accused the Bank of England of failing to contain rising inflation.
Concern: The government has been criticized for not doing more to alleviate the cost of living crisis
Panmure chief economist Gordon Simon French said he would not be “surprised” if inflation reached 9 percent this week. He said the latest figures will be greatly affected by the recent rise in electricity bills. “It will be a big jump, because the April price limit is contained in it,” he added.
French also predicted that inflation in the UK would soon rise by more than 10 per cent, which would mean that the consumer price index would be at its highest level since the 1980s.
He said that the higher the inflation in the short term, the more likely it is to be “introduced” into the economy as a whole.
The government has been criticized for not doing more to alleviate the cost of living crisis – and is advancing with very unpopular tax increases.
Business Secretary Quasi Quarteng said yesterday that “obviously” there is a problem with high inflation, but did not criticize the head of the Bank of England Andrew Bailey.
According to The Sunday Telegraph, cabinet ministers are questioning the Bank after it failed to “fix everything properly”.
The central bank has already warned that inflation could exceed 10 percent by the end of the year, well above the 2 percent target. He raised interest rates from 0.1% to a 13-year high of 1% in an attempt to close prices.
But amid rising inflation and rising borrowing prices, the bank warns that the economy could go into recession this year.
Former Tory cabinet minister Liam Fox said he “constantly underestimated the threat” of rising inflation.
Economists predict that inflation will jump to 9% this week.
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