Inflation surge threatens to trigger recession Business

Emily Nichol, economist at Daiwa Capital Markets, said the speed with which profits are being sapped will threaten the sustainability of the recovery.

“With real disposable incomes falling sharply and an economy heavily reliant on consumer spending, the likelihood of a UK recession over the next couple of quarters continues to rise,” she said.

Price increases are spreading across large swaths of the economy, driven by energy costs.

Diesel is up a third on the year, closely followed by gasoline, after the Russian invasion of Ukraine sent oil prices soaring.

Used cars cost 31% more today than a year ago as shortages of key components limit production of new vehicles.

Household items, from glassware to tools, furniture to stoves, were all up at least 10%.

The cost of clothing also recorded the biggest increase on ONS records dating back to the late 1980s by more than a tenth.

Food is 5.8% more expensive today than in March 2021, with pasta up more than 10%, lamb nearly 17% and margarine more than a third.

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This notice was published: 2022-04-13 10:11:08

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