Economic analysts have warned that the rate of inflation could hit 18% in 2023 as a result of rising energy prices.
Think tank the Resolution Foundation stated that inflation could hit 18.3%, whilst investment bank Citi said that it is ‘entering the stratosphere’.
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.’
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