The UK is braced for a tough challenge this winter which represents a weird blend of low temperatures and high inflation. Meanwhile, the cost-of-living crisis in the UK is plumbing new depths.
According to flash estimates, headline inflation could soar above 22% for the whole of 2023. This dismal forecast was unveiled by Goldman Sachs ahead of winter 2022/23. Analysts at Goldman Sachs warned that inflation in Great Britain could hit incredible levels on the back of the protracted energy crisis. Amid such elevated consumer prices, the national economy is doomed to failure, so the gross domestic product could tumble by 3.4%. However, if energy prices moderate according to the cautious scenario by commodity strategists, inflation is likely to peak at 14.8% in January 2023.
Analysts at Citi provided a more optimistic forecast. Experts predicted that consumer inflation would surge as high as 18% next year. Currently, analysts are trying to puzzle out how the government policy could solve the inflation issue and revitalize the national economy after Liz Truss took office as a new Prime Minister. The UK CPI leapt by 10.1% in the 12 months to July, the fastest rate in the last 40 years.
