The United Kingdom suffered an inflation of 10.1% in July and could reach 18.3% next year
The war, Brexit, drought and winter will cause a rise in the price of products
Rising energy prices could push UK inflation up to 18% next year, the highest rate in nearly 50 years, economic analysts predicted. Inflation, the rate at which prices rise, hit 10.1% in July, five times the Bank of England’s (BoE) target.
Investment bank Citi declared that inflation was “entering the stratosphere” and could go up to 18%, while Resolution Foundation commented that it could reach 18.3%. The BoE forecast that inflation will rise to more than 13% in the coming months. War, drought, winter and Brexit have caused a terrible situation in the British population.
Citi’s forecast, which would be the highest UK inflation rate since 1976, comes ahead of Friday’s energy price cap announcement on the maximum amount providers can charge households for gas and electricity from October. Citi’s chief economist in the United Kingdom, Benjamin Nabarro, communicated that concerns about affordability were “growing louder by the day.”