Cost of living crisis: Britons warned there’s worse to come
In a factory in britain’s west midlands industrial spine this is powder coating it applies a smooth dry finish to metal work but to work it needs heat so much you can see it these ovens run at more than 200 degrees c and that takes gas the cost of which is about to soar threatening the viability of this company next april we.
Come out of our tiding contract and the energy bills are forecast to go from roughly 60 to 70 000 pounds a year to near 250 to 300 000 pounds a year um which at the moment is is unsustainable keeps up at night it’s like a train coming down the tracks and then you can’t avoid it.
You’re constantly worried about what you can do wholesale gas prices aren’t just fueling the ovens here the bank of england says they’ll drive inflation to a peak of 13.3 percent in the autumn and will keep it above 10 until this time next year this is imported inflation but to stop.
It being baked into domestic prices the bank’s raising rates at home by the largest amount in 28 years despite the looming recession so is it the case this has got to hurt if it’s going to work the reason we’re doing it is because if we don’t get the inflation under control if we don’t bring it down from where i’m afraid it’s.
Got to go up to because of the say of this huge energy shock that we’re having if we don’t bring it down then then the damage and the distress will be even greater this is a truly bleak forecast from the bank and its medicine will be hard for many to swallow an interest rate rise.
That could add 650 pounds to average mortgage repayments on top of energy bills that will rise above three and a half thousand pounds turning energy poverty into a mainstream issue even for the affluent not just the very poorest but the message from the bank is that it’s necessary to keep long-term inflation in check.
For rachel a single mother on universal credit there’s a little room left to budget for the squeeze that lies ahead when it first all started i’d already you know cancelled your prime and your netflix and things like that because you know you’ve got to eat you’ve got to have the heating on especially with a two and a half year old.
But i don’t know how much more i can actually cut out without affecting buying food in for both me and william which is a serious thought and really does get me worried this family and millions like them will need help until the bank and government.
Put the lid on inflation paul kelso sky news at the bank of england