“With inflation skyrocketing, another big interest rate rise in December looks likely. However, with a looming recession, tighter fiscal policy and stronger sterling set to subdue inflation, the case for aggressively tightening monetary policy should fade.”
Alice Haine, personal finance analyst at bestinvest, also outlined what high inflationary levels could mean for Britons going forward.
She said: “High inflation is a nightmare for household finances, as it erodes spending power, gnaws away at savings and makes it very hard for people to maintain their living standards because their incomes simply don’t stretch as far.
“Throw in higher borrowing costs as interest rates continue their upward trajectory and the prospect of higher taxes and household budgets are getting squeezed in every direction.”
