Wednesday Mar 29, 2023

The Cost Of Living Crisis Worsens In UK as Energy Prices Increase

The Cost Of Living Crisis Worsens In UK as Energy Prices Increase

UK’s energy crisis is all set to worsen the country’s cost of living crisis with winter coming close and an energy price increase due in October inflation levels in the country might break all records. Financial experts at US based Citibank predict the country’s inflation levels will cross 18% in January 2023.

 The last time UK’s consumer inflation crossed the 18% mark was in 1976. The numbers fall in line with other firms like EY and Goldman Sachs who had predicted that inflation will reach at least 15%. The figure is far higher than the Bank of England’s target. Earlier UK central bank warned the inflation levels will hit 13% in October this year. For July, the UK reported 10.1% inflation the highest in nearly 40 years. The levels have been triggered by the global energy price rise fallout from the war in Ukraine. Meanwhile, energy companies have scaled up their regular exercises preparing for possible gas shortages in the coming winter. The annual drill will see potential scenarios including rationing electricity war gamed over four days rather than the usual two as energy concerns grow.

Furthermore, the office of national statistics (ONS) has revised its 2020 contraction figures from 9% to 11%.  This surpasses the contractions caused by the world wars and is the worst since the year 1709. The ONS will publish the growth figures for 2021 and the first half of 2020 on September 30th.

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