Economic analysts have warned that the rate of inflation could keep rising in
2023 as a result of rising energy prices.
Think tank the Resolution Foundation stated that inflation could go above 15%,
whilst investment bank Citi said that it is 'entering the stratosphere' and
could reach 18.6%.
Predictions outlined by the Bank of England (BoE) have suggested that inflation
could rise to over 13% later this year.
Commenting on the matter, James Smith, Research Director at the Resolution
Foundation, said:
'Inflation has hit double digits earlier than expected off the back of the
highest food price inflation in over two decades, and is set to continue
climbing as energy bills soar this winter.
'There is no escaping this cost-of-living crisis, with pay packets shrinking
at their fastest pace since 1977 and low-income households facing the
prospect of cutting back 'non-essential' spending by 25% to cope with energy
bills of over £4,000 from January.'
Internet link: Resolution Foundation website