Britons are facing a big financial hit this year from a combination of rising energy costs, tax hikes and general inflation according to new research by the Centre for Economics and Business Research (CEBR).
A family of four will have to find an extra £1,800, a retired couple £1,100, and a lower income couple almost £900 said the think tank.
The prediction coincided with gas prices in the UK hitting record levels yesterday, even topping levels seen when the Beast from the East swept in during 2018.
Petrol prices are also likely to be at an all-time high by Christmas the RAC has forecast due to the combination of the shortage of oil tanker drivers and rising crude prices.
September also saw the end of both the coronavirus furlough job support scheme and the extra £20-a-week boost to Universal Credit.
Economists today were forecasting retail prices in Britain might be rising by as much as 7% a year in 2022 tor well above the official forecast and compared to 4.8% currently, a number already buoyed by rising fuel and food costs.
Companies in Britain raised prices at the fastest rate on record during September.
Underlining the trend, Topps Tiles, one of the UK’s most prominent high street groups, said “mitigation or pass-through of the associated cost pressures remain a key focus for the business.”
But it’s not just Britain being affected.
According to the International Monetary Fund, the global recovery is being “hobbled” by rocketing prices.
Kristalina Georgieva, the organisation’s head, said that the global economy is still struggling badly with the effects of Covid and urged central banks to take action if needed to keep inflation under control.
UK prime minister Boris Johnson, however, played down the current inflation spike saying it would be only “temporary”.
Talking to the BBC he said: “Actually I think that people have been worried about inflation for a long time and it hasn't materialised.'
“'The UK has got to - and we can - do much, much better by becoming a higher-wage, higher-productivity economy.”
The PM added that Christmas this year would be better than last year even with the predicted shortages, but admitted this was a low base comparison.
Reports today also suggested that people have already started to stockpile food ahead of the Christmas holiday.
Aldi said it is already selling 1,500 frozen turkey crowns a day, while Xmas pudding sales are up 45%.