IMF warns inflation to remain elevated in UK
The IMF warns of the worst cost-of-living crisis the UK has seen in decades.
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The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, US, September 4, 2018. (Reuters)
"The outlook for the UK economy is sobering: for 2023, the output is expected to contract and inflation to remain elevated."
In a statement released by the House of Commons treasury committee yesterday, the IMF warned that the British public will be passing through torrid times as the new fiscal plan tries to counteract inflation during times of recession. This dire situation is assessed to be the result of the skyrocketing energy prices.
The inflation rate has hit a four-decade high, increasing to 11.1%, and the government explained the reasons for this economic downturn as being due to the Covid pandemic and the war in Ukraine.
Read more: UK inflation returns above 10 percent
The Resolution Foundation think tank assessed that the British public is set for more economic grievances as the value of their income continues to deteriorate. It reported that British families have only experienced half of the lost income they are expected to suffer during 2023.
The retail industry in #Britain had a "brutal" year in 2022, with more stores closing than at any other time in the previous five years. Industry groups predict that 2023 will be just as difficult.#Inflation pic.twitter.com/niL09Hljyk
— Al Mayadeen English (@MayadeenEnglish) January 5, 2023
Earlier in April 2022, consumer prices in the United Kingdom rose as a ceiling on household gas and electricity was raised owing to rising wholesale energy costs. Bank of England Governor Andrew Bailey had even warned of an "apocalyptic" situation caused by skyrocketing food prices, which he claimed were exacerbated by Ukraine's inability to sell its commodities.
Read more: UK inflation reaches 40-year peak
The post-apocalyptic stage of this economic downturn, according to the IMF, won't be assuaging the financial grievances of the British middle and lower classes. it would have to get a lot worse before getting any better.
