Inflation has hit Great Britain and for the first time in over 50 years, it is expected to hit new heights as gas and electricity prices continue to climb.
According to a report from Citi, inflation is about to rise beyond 18 percent and the chief United Kingdom economist Benjamin Nabarro, has already told clients that the bank expects for inflation to soar again to 18.6 percent.
“Our latest estimate, updated for the further 25 percent and 7 percent rally in UK gas and electricity prices last week, points to a further upside shift in UK inflation,” Nabarro said.
“Accounting for these developments, as well as updating our own weights for CPI / RPI and honing our own accounting for curve backwardation, we now expect CPI inflation to peak at over 18 percent in January. RPI inflation, we think, will peak at over 20 percent.”
Currently, the CPI is around 10.1 percent, and it hasn’t been since 1976 when energy prices hit extreme highs thanks to stagflation and an “oil supply shock.”
In response to growing prices making life difficult, there have been over 100,000 people in the UK sign up to end paying their electricity bills in protest of the price hikes on October 1.
“On our own we’re weak, but collectively we are unstoppable,” tweeted Don’t Pay UK. “We just need to find each other and do this together.”
Workers are also not going to work due to poor work conditions and low pay and one of the largest ports in the UK is under threat of closing down as employees ditch their jobs until the situation is rectified.
According to Nabarro, “should signs of more embedded inflation emerge,” the Bank of England could begin to raise interest rates to six or seven percent.
“The risks remain skewed to the upside,” he added.
There has been rumors of a support package, done through tax cuts as part of an emergency budget, but if inflation continues to become more bloated than it already is, the United Kingdom could potentially be plunged into violence and riots.
What was a first world nation, with a strong economy, will suddenly resemble a third world country – with winter on the way, and prices growing by the day, it seems inevitable at this point.
Europe is also buckling under the weight of inflation and what was once the strongest economy on the continent – Germany – is expected to hit 10 percent before the fall arrives, the highest inflation the country has seen in over 70 years.
With the war in Ukraine continuing by the day, things seem to only be set on a course to ruin – and while families struggle to pay rent, get gas for work and keep their lights on, Biden continues to allow the Democrats to send billions of taxpayer dollars to other countries – like Ukraine.
Natural gas prices are set to rise at least 60 percent this winter in the US as domestic supply dwindles and exports increase.