The British economy is weighed down by strong inflation, which is predicted to jump up to 13 percent this year.
Britain will sink into a long recession this year, predicts the country’s central bank, the Bank of England. The bank estimates that the recession will start in the last quarter of this year and last until the end of next year.
The British economy is burdened by strong inflation, which is predicted to gallop up to 13 percent at its worst this year.
Inflation is especially accelerated by the price of energy, which started to rise after Russia invaded Ukraine. The Central Bank reminds that the wholesale price of gas has almost doubled since spring.
Citizens’ real incomes and purchasing power decrease due to inflation. This is pushing Britain into recession.
On Thursday, the central bank decided to raise its key interest rate by 0.50 percentage points to 1.75 percent in order to curb inflation. However, the rise in interest rates is also apt to push the economy into recession.
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