Inflation could reach more than 10 per cent for the poorest families if there is a second sharp rise this autumn, a think tank has warned.
Food price inflation is two percentage points above its historic average and the poorest tenth of households spend twice the share of their family budgets on food and energy bills compared with the richest tenth, the Resolution Foundation said.
It said that the war in Ukraine could supercharge inflation in food and energy this year, affecting Britain’s poorest households particularly badly. The higher inflation will also cause higher debt repayments for the government and a deeper income squeeze for the average household. The conflict is also likely to weaken GDP growth, making a recession more likely.
Analysis by the
