If Boris Johnson manages to cling on to his job, he’ll have much more than the parties of lockdowns past to worry about. Britain’s cost of living crisis is worsening still, with CPI inflation rising by 5.4 per cent in the 12 months leading up to December last year. This has, once again, outpaced consensus, surging even further past the Bank of England’s most recent official forecast.
There’s little doubt left that heavy government spending is playing a significant role in the inflation we’re experiencing now
Inflation is now at a 30-year high. And it’s still rising. Capital Economics now estimates a peak of 7 per cent around April, and there is once again increasing speculation that December’s interest rate rise to 0.25 per cent is only the beginning of more hikes to come.
These price hikes will be acutely felt.
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