LONDON — The Bank of England says the United Kingdom’s economy is projected to enter a recession in the final three months of the year, amid soaring gas prices stemming from Russia’s invasion of Ukraine.
The bank said Thursday that inflation will accelerate to over 13% in the fourth quarter and remain “very elevated,” for much of 2023. The forecast reflects a sharp increase from the 9.4% rate recorded in June.
The bank’s forecasters say inflation will hit its highest point for more than 42 years amid the doubling of wholesale gas prices.