UK inflation rate: How high will inflation go? BoE prediction as Rishi Sunak tight-lipped
INFLATION rates promise to compound the UK's cost of living crisis this year, as average Britons struggle with rising gas prices and taxes in the post-Covid world. How high will inflation go?
Rishi Sunak says he ‘stands ready’ against inflation
Britons face a cost of living crunch in 2022 that will see millions worse off, with rising energy rates permitted by Ofgem delivering the first blow in April. The new cap of £693 a year has seen some people's bills nearly double as the Government allows firms to recoup cash and avoid meeting the fate more than a dozen others did in 2021. The bills raid promises to cut deep into people's disposable incomes and inflation even more as it leaves them paying a premium for the most basic necessities.
How high will inflation go?
The Bank of England ahs raised the UK's inflation rate to nine percent, up two points since its move to seven percent.
The rate last rose in March 2022 and marks the highest the UK has seen in 70 years.
Bank of England officials believe it will only rise further throughout the rest of the year.
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The bank handles the CPI, which measures the average price of 700 items such as a packet of pasta and a train ticket.
Momentum within the current prices, according to the bank, will lead the rate of inflation into the double-figure range.
Bank of England officials have estimated that, by the end of 2022, the inflation rate could reach as high as 10 percent.
On average, that would mean items that cost approximately £5 will rise in value by 50p.
While this isn't much on its own the costs add up and may prove bank-breaking for poorer families.
The average weekly grocery bill - currently estimated at £40.30 per week - would rise to £43.33.
The Bank of England expects inflation to let up by 2023, dropping by as much as eight percent.
While Britons reckon with the rising prices, they will also have lower salaries to help cushion the blow, figures suggest.
The Office for National Statistics (ONS) recently found that real wages have dropped to a nine-year low.
The rising inflation, the organisation found, has meant that real-terms pay has dropped by 1.2 percent.
The Office for Budget Responsibility has warned that increase further to 2.2 percent, marking the most significant income decline since 1956.
While Rishi Sunak is yet to reveal how the Government intends to navigate the crisis, people can expect an announcement in the next few months.
Britons in need of additional assistance to avoid sliding into poverty will learn what the Chancellor has planned "before summer recess".
Treasury sources recently told the I Paper that he would act when he "knew more about energy price changes" sometime before MPs break up for summer in July.
Any financial aid from the Chancellor would be "targeted", the source added, and would not come via an emergency budget or involve tax or VAT changes.
Instead, he is reportedly considering "targeted" assistance, with "non-fiscal" measures due before summer.