5 May 2022

Inflation crisis: Economic recession by Christmas?

Scotland Correspondent

The UK economy faces a grim future as inflation soars to more than 10% later this year – that’s the warning as the Bank of England voted to raise interest rates to 1% – the fourth monthly rise in a row.

The cost of living crisis has been compounded by the war in Ukraine, which has sent energy prices soaring and shocked economies around the world.

The bank is predicting another huge rise in energy bills later this year, as well as a slowdown in spending and economic growth.