British Think Tank Believes Inflation Will Wreck in the United Kingdom
The National Institute of Economic and Social Research (NIESR) issued a report on August 3, 2022 indicating that inflation in the United Kingdom will rise to “astronomical” levels for the rest of the year.
The British think tank argues that inflation will compel the Bank of England to pursue interest rate hikes that could last longer than previous expectations.
The NIESR report also noted that there would be a long recession that would go well into 2023, which would negatively impact households that are already in a precarious economic state throughout the UK.
The think tank believes that the growing cost-of-living crisis would eat away at the savings of British households unless British policymakers provided immediate financial aid to British households.
Stephen Milliard, NIESR’s deputy director, said that there would be “no respite” for British households and businesses from “astronomical inflation” in the short term. Milliard added that “we will need interest rates up at the 3 percent mark if we are to bring it down.”
Per NIESR, rising gas prices and surging food costs would have inflation rise to 11% before the end of 2022 while the retail prices index (RPI), which is used to establish rail fares and student loans repayments, is projected to reach 17.7%.
Over a million households would be faced with the tough decision of choosing to buy enough food and heat their homes. According to Press TV, consumer price inflation reached 9.4% in June, which represents a 40-year high.
“It needs urgent and sustained, and credible, intervention by successive governments. Unfortunately, it’s not clear to me that we have the political institutions to deliver that,” stated NIESR Director Jagjit Chadha during a press conference.
According to the think tank’s projections, the total of British households with no savings is expected to double to 5.3 million — roughly 20% — by 2024.
This report warned that approximately 1.2 million households could be staring down the barrel of poverty in 2023. Food and energy bills would be the primary factors that would lead to the mass impoverishment of British working class populations.
“These are devastating numbers,” stated NIESR researcher Arnab Bhattacharjee.
The toxic combination of the misguided sanctions war the Collective West is waging against Russia and Europe’s embrace of green energy policies have left many European countries in vulnerable economic positions.
As a result, countries across the West are on the cusp of experiencing wholesale declines in their living standards. Something that was unfathomable in decades prior.
That’s what happens when nations embrace the nasty cocktail of foreign policy universalism and the fanatic green agenda.
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