Inflation set to rise even higher than Bank of England’s 6% level, experts warn
- The inflation rate is currently 5.1%, but the Bank expects it to peak at 6% in AprilI
- This would be the highest since 1992 and three times the official target of 2%
- An expert advised households to “watch out for inflation reaching over 6%”
Inflation is expected to rise even higher than the 6% level forecast by the Bank of England, experts warned yesterday.
They advised families to add a bigger hit to their budgets for shopping, bills and going out.
The inflation rate is currently 5.1%, but the Bank expects it to peak at 6% in April, the highest since 1992.
Inflation is expected to rise even higher than the 6% level forecast by the Bank of England, experts warned yesterday (file photo)
That would be three times the official 2% target and could spell disaster for households struggling to make ends meet.
Families also face painful tax hikes in April, designed to attract more money to spend on the NHS and social care.
National insurance increases by 1.25% while a freeze on income tax brackets will push more people to higher rates.
Douglas McWilliams, of the Center for Economics and Business Research think tank, advised households to “watch out for inflation over 6 percent.”
The inflation rate is currently 5.1%, but the Bank of England (file photo above) expects it to peak at 6% in April – the highest since 1992
He added: “Although wages will rise both due to a higher cost of living and a tight labor market, they are unlikely to do much more than keep pace with the inflation.
“So watch out for a cut in the cost of living in the UK, especially as rising prices exceed growth in disposable income.”
Other experts had previously predicted that household budgets would be hit by at least £ 1,200 in 2022. Inflation in the United States – currently 6.8% – is believed to be able to exceed 7%.