The investment bank has said that Britain will go right into a recession in December 2022, until a minimum of the start of 2024. Analysts at Citigroup predicted earlier this month that inflation could peak at almost 19 percent.
Goldman said: “In a scenario where gas prices remain elevated at current levels, we might expect the value cap to extend by over 80 per cent in January.”
An economist from the investment group said: “Concerns around cost of living pressures within the UK have continued to accentuate on the back of the worsening energy crisis.
“Real consumption remains to be prone to decline significantly.”
The investment bank has also reconsidered its previous estimates the UK economy will grow next yr.
Analysts with the group predicted the economy would grow by 1.1 percent in 2023, but now say it’s going to contract by 0.6 percent.
Experts have previously warned that even lower inflationary figures could still cause chaos for Britons.
Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, suggested a predicted inflationary figure of 18.6 percent would cause “dire straits” for tens of millions.
She said: “Because these horrible price hikes are being driven by the essentials people have to stay alive – like food and warmth – it’s going to hit those on lower incomes hardest, who’ve got nothing left to provide.
“A winter of woe is looming amid these frightening forecasts and there’s little assist in sight to stop a spiral of debt as Shocktober approaches.
“It’s going to hit those on lower incomes harder.
“Those that had saved anything through the lockdowns may possibly be forced to eat into their savings, while those with nothing left could also be forced to borrow – in the event that they can.
“Anyone carrying variable-rate debts will then be hit even harder when the Bank of England hikes rates to try to maintain a lid on prices.
“Rising prices and tightening belts are also making recession more likely – which might force people out of labor, and make a desperate situation completely unattainable.”
More to follow…