The Bank of England is widely expected to hike rates by the highest level in nearly three decades on Thursday after experts warned that inflation could peak at 15%. Decision makers on the Bank's Monetary Policy Committee (MPC) will increase interest rates from 1.25% to 1.75%, analysts believe, as they try to bring inflation back under control.
Previous Bank predictions forecast that Consumer Prices Index inflation would peak at around 11% this autumn, before falling back. But on Wednesday the Resolution Foundation think tank warned of further misery to come.
While the prices of some global commodities, such as oil, have come off their peaks, the gas price is obliterating household budgets. "It is now plausible inflation could rise to 15% in the first quarter of 2023," the foundation said.
