Citigroup's near 19% inflation forecast has riled markets and industry commentators have that warned consumers could face a financial breaking point and 'inevitable' recession if this became a reality.
Citi bank has forecast UK CPI to hit 18.6% in January, and the energy price cap to rise to £3,717 in October, then to £4,567 in January and £5,816 in April, beating the 1979 peak when CPI hit 17.8% following the OPEC oil shock. Myron Jobson, senior personal finance analyst at interactive investor, said that inflation soaring that high would be "unimaginable for personal finances", particularly after the festive break, when household budgets are leaner post-Christmas. "The harsh reality is many more UK households could face financial breaking point without meaningful intervention," he ...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes