The Bank of England is also warning that the UK economy will enter recession later this year.
The Bank has cut its growth forecasts, and now sees the economy falling into recession from the October-December quarter.
In a grim warning about the economic outlook, it says:
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GDP growth in the United Kingdom is slowing.
The latest rise in gas prices has led to another significant deterioration in the outlook for activity in the United Kingdom and the rest of Europe. The United Kingdom is now projected to enter recession from the fourth quarter of this year.
Real household post-tax income is projected to fall sharply in 2022 and 2023, while consumption growth turns negative.
Here’s the chart/ table that everyone will be looking at today.@bankofengland projection for CPI inflation.
UK inflation expected to peak at 13.1% by end-2022.
This inflation forecast is conditioned on the assumption that interest rates follow a path implied by market yields. pic.twitter.com/O2YpheDKPL
— Jumana Saleheen (@JumanaSaleheen) August 4, 2022
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