New forecasts from the Bank of England have predicted the UK economy will soon to slammed into reverse as rocketing energy costs will in turn drive inflation up.
The Bank has warned UK consumers inflation will hit 10% this year and average energy bills will reach a 40-year high. This comes just days after it elected to hike interest rates from 0.7% to a 13-year high of 1%. Some of its rate-setters voted for an immediate increase to 1.25%.
The chilling forecasts continue as experts predict average annual gas and electricity prices, which soared to £1,971 last month, will leap again in October, to around £2,800.
