Britain is still heading for a recession, but skyrocketing living costs could slow down, Bank of England economists have said.
Inflation is set to soar to more than 13% with average energy bills set to jump by 80% in October, from £1,971 to £3,549.
Interest rates have been increased from 1.25% to 1.75% - the biggest rise for 27 years, and the economy is expected to shrink every three-month period from October until 2014, by as much as 2.1% according to Bank of England forecasts.
