London, Inflation is expected to dramatically increase over the next year forcing the Bank of England to raise interest rates higher and for longer than previously expected, according to experts, The British Guardian News reported.
The National Institute of Economic and Social Research (NIESR) forecast a long recession that would last into next year and hit millions of the most vulnerable households.
The NIESR said gas price rises and the escalating cost of food would send inflation to 11% before the end of the year while the retail prices index (RPI), which is used to set rail fares and student loans repayments, is expected to hit 17.7%.
As the government faces calls to step in with further support for hard-pressed families, NIESR said average incomes would fall by a record 2.5% this year, leaving millions of families to use savings or expensive credit to pay essential heating and food costs this winter.
Source: Oman News Agency