Inflation is forecast to hit 11 per cent in October, the Bank of England has said, prompting renewed fears for how millions of struggling Brits will cope.
The bank has raised interest rates from 1 per cent to 1.25 per cent in a bid to curb inflation, making it more expensive for businesses to borrow and grow, but this will push up mortgages and credit card payments for families nationwide.
The Bank of England’s target rate of inflation is two per cent. Measures are aimed at meeting that, with prices for ordinary grocery items already shooting up.
As of April, 500g of beef mince had risen from £2.02 to £2.34, and 600g of chicken breast from £3.22 to £3.50. The bank has warned it will “act forcefully” if necessary.
However, the move to increase the cost of borrowing has been met with concern over its impact on those struggling to get by.