Inflation shock as Goldman Sachs suggests huge rise to 22 percent | Personal Finance | Finance

The investment bank has said that Britain will go into a recession in December 2022, until at least the beginning of 2024.

Analysts at Citigroup predicted earlier this month that inflation could peak at almost 19 percent.

Goldman said: “In a scenario where gas prices remain elevated at current levels, we would expect the price cap to increase by over 80 per cent in January.”

Experts have previously warned that even lower inflationary figures could still cause chaos for Britons.

Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, suggested a predicted inflationary figure of 18.6 percent would cause “dire straits” for millions.

She said: “Because these horrible price hikes are being driven by the essentials people need to stay alive – like food and heat – it’s going to hit those on lower incomes hardest, who’ve got nothing left to give.

“A winter of woe is looming amid these frightening forecasts and there is little help in sight to stop a spiral of debt as Shocktober approaches.

“It’s going to hit those on lower incomes harder.

“Those who had saved anything during the lockdowns may well be forced to eat into their savings, while those with nothing left may be forced to borrow – if they can.

“Anyone carrying variable-rate debts will then be hit even harder when the Bank of England hikes rates to try to keep a lid on prices.

“Rising prices and tightening belts are also making recession more likely – which would force people out of work, and make a desperate situation completely impossible.”

More to follow…