Inflation to hit an eye-watering 5pc

HOUSEHOLDS are set to end up £1,700 worse off over the next year as rising gas, fuel and food prices squeeze their finances.

The average family will have to spend £33.60 more per week in the next 12 months. This month, costs are set to be £109 higher than the same time last year.

And pressure is expected to intensify in 2022 as supermarkets ramp up prices. The analysis, by the Centre for Economic and Business Research for BBC’s Panorama, estimates inflation will rise to 4.5 per cent by Christmas. And it is likely to hit 5 per cent early next year, the Bank of England predicts. The Bank expects this to be ‘transitory’, but economists warn prices will remain high if Covid and labour shortages continue to disrupt global supply chains.