London: The price of crude oil has reached its peak due to the ongoing war between Russia and Ukraine. Due to this, inflation in many countries has broken the record for many decades. Inflation in the UK has reached a 30-year high. Due to this, people are also finding it difficult to collect bread for June 2. The recession in Britain has started to be heard in the country. According to new research, in the next year, about 15 lakh families will not be in a position to pay the bills for food and drink, and energy. Inflation and heavy taxes have spoiled his budget.
According to the National Institute of Economic and Social Research (NIESR), Britain will be in the grip of recession this year. He has appealed to Finance Minister Rishi Sunak to take more measures to save the people from this situation. The Finance Ministry says that the government is helping the people in every possible way. NIESR has said in its latest quarterly estimate of the UK economy that poor families have been hit hardest by inflation. The Bank of England says that inflation can reach 10 percent in a few months.
Fear of recession
According to a BBC report, the NIESR said that the government should increase Universal Credit by 25 pounds every week between May and October. This will put a burden of 1.3 billion pounds on the government. If they are not given this support, then poverty will increase in the country. Due to this, lakhs of families will face the danger of starvation. According to NIESR, inflation will be 7.8% in 2022 and by 2024 it will be above 3 percent. The Bank of England has set an inflation target of 2 percent.
Expected to grow at 3.5% in 2022
NIESR has projected the economic growth rate to be 3.5% in 2022, but it may decline in the last two quarters of the year. This UK economy will go into recession. The decline in the economy for two consecutive quarters is called recession.
NIESR says that due to government policies, the real income of the people in the country will decrease. According to him, the real income of families will decline by 2.4 percent in 2022 and unemployment will increase next year.
