The cost of living crisis is ony getting worse with interest rates now set at 1.75% and inflation forecast to go over 13% in October - that means everything from mortgages and credit card debt to food, clothes and fuel will be getting even more expensive in the weeks ahead. At the same time, gas and electricity bills are forecast to hit £3,500 a year in October and £4,000 a year in January.
It comes as inflation continues to spiral out of control. Inflation is currently at a 40-year high of 9.4% and is expected to keep rising, with the Bank of England warning it will hit 13.3% in October as the UK slips into recession - a time of spiralling costs and thousands of job cuts.
The bank expects the Uk to enter recession for the end of this year and the whole of 2023 with our economy shrinking by more than 2%, that means companies either closing or laying off staff in a bid to stay afloat. Cornwall Insight principal consultant, Craig Lowrey, told the BBC: “Given the current level of the wholesale price, this level of household energy bills currently shows little sign of abating into 2024.”
