Fuel cost surge and dire economic forecast shatter PM’s hope of reset

The cost of filling the average family saloon could hit £100. Photograph: David Levene/The Guardian

Boris Johnson’s attempt to reset his troubled premiership has received a double blow after petrol prices had their biggest daily rise in 17 years and a leading international thinktank said the UK economy would slow to a standstill next year.

Fears that Britain is heading for a prolonged period of 1970s-style stagflation intensified amid fresh evidence of the damaging impact of the war in Ukraine on the cost of living and growth.