Warning to UK re cost of living pressures - 'the worst is yet to come'

PEOPLE ARE already struggling to meet the growing cost of living in the UK. It seems there is little to be optimistic about when considering the economy moving forward, as a top financial analyst confirmed in his report.

By Sally Burton
Wednesday, 15th June 2022, 10:02 am
Updated Wednesday, 15th June 2022, 10:07 am
Families are feeling the pinch as the cost of living escalates  (photo: Adobe)
Families are feeling the pinch as the cost of living escalates (photo: Adobe)

Saxo Markets head of macro analysis Christopher Dembik warns there is little to stop the freefall that is already having a huge impact on people’s daily living standards.

Action from the government is the only way to ease the pressures, he claims.

In a recent article that follows “worrying” data on consumer confidence, he said: “We are very pessimistic about the United Kingdom’s outlook, especially.

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Money in short supply - but the situation is not set to improve in the foreseeable future (photo: Adobe)

“All the statistics tend to indicate the economy will experience negative growth this quarter.

“Consumer confidence has fallen to an all-time low due to the surge in cost of living, retail sales look stagnant in the medium-term and inflation jumped from seven per cent in

March to nine per cent in April.

"Expect it to climb above 10 per cent in the coming months. All the major leading indicators of the UK economy confirms the worst is yet to come”.

He continued: “We think that at least two major developed economies are on the brink of a technical recession this year - the United Kingdom and

“As for change, there is little consumers can do to stop rising energy bills, petrol costs and food prices grasping the nation in a stranglehold – the only way to avoid a recession is probably

through increased government support, for example via energy checks.”

To read the full article visit https://www.home.saxo/en-gb/content/articles/macro/chart-of-the-week--is-a-recession-inevitable-in-the-united-kingdom-23052022 site.