UK households could face 'financial breaking point' if inflation hits 18%

Recession is 'almost an inevitability’

Citigroup's near 19% inflation forecast has riled markets and industry commentators have warned consumers could face a financial breaking point and 'inevitable' recession if this became a reality.

Citi bank has forecast UK CPI to hit 18.6% in January, and the energy price cap to rise to £3,717 in October, then to £4,567 in January and £5,816 in April, beating the 1979 peak when CPI hit 17.8% following the OPEC oil shock. Myron Jobson, senior personal finance analyst at interactive investor, said that inflation soaring that high would be "unimaginable for personal finances", particularly after the festive break, when household budgets are leaner post-Christmas. How to invest in a recession "The harsh reality is many more UK households could face financial breaking point witho...