British households will suffer an average of 3 2,320 this year as wages fail to keep pace with rising energy and fuel costs, representing the biggest drop in living standards since the record began.
This is the conclusion of the Center for Economics and Business Research (CEBR), which says that the increase in energy price cap by OffZem means that the average household will pay 54 percent more and 73 percent more for their energy bills than six months ago. More than a year ago. This increase would result in a 3 percent drop in real disposable income this year, the CEBR says, equivalent to £ 2,320 hits per household.
Last month, the Office for Budget Responsibility said rising real inflation would reduce real disposable income by 2.2 percent in 2022-23.
The Bank of England predicts that headline inflation will rise from 6.2 per cent in February to 8 per cent in the coming months and is likely to rise further by the end of this year, surpassing wage growth.
According to the Insolvency Service, a government agency, business volatility peaked in the fourth quarter of last year at almost eight years, with the number of bankruptcies registered in February being 13 percent higher than the pre-epidemic. .