Bank of England expects UK energy shock on the scale of the 1970s

Andrew Bailey, governor of the Bank of England, says: ‘The shock from energy prices this year will be larger than any single year in the 1970s.’ Photograph: Justin Tallis/AP

Britain’s economy is expected to suffer a growth slowdown amid the biggest single shock from energy prices since the 1970s, the governor of the Bank of England has warned.

Andrew Bailey said there were signs of slowing demand from consumers and businesses as they come under heavy pressure from the cost of living squeeze, with soaring prices for gas, electricity and other goods and services.