Inflation 'To Hit 18%'... How Will Millions Cope?

Prices could rocket at the highest rate since 1976 as analysts predict...

- Sam Lister

Consequences will be ‘catastrophic’

STRUGGLE TO COPE MILLIONS FACING A

INFLATION is expected to soar to its highest level in nearly 50 years, leaving millions of people struggling to cope.

Experts warn the relentless rise could see prices increasing by 18.6 per cent in January.

Such a sky-high inflation rate, last seen in 1976, would be “catastrophic” for older people, warned Dennis Reed, director of campaign group Silver Voices.

He said: “Millions will be thrown into poverty unless the Government takes radical action.”

Caroline Abrahams, charity director at Age UK, claimed the forecast would “strike fear into the hearts” of many people in retirement as it will take prices for essentials beyond their means.

She added: “The Government must act quickly – people urgently need reassurance they will not be abandoned and help is on the way.”

Sarah Coles, a senior personal finance analyst at Hargreaves Lansdown, said there were 10 food groups that have seen their prices rise more than 18.6 per cent in the past year – including bread, milk, pasta and butter.

She insisted: “Inflation at 18.6 per cent would push millions of people into dire straits.

“And because these horrible price hikes are being driven by the essentials people need to stay alive – like food and heat – it’s going to hit those on lower incomes hardest, who have nothing left to give.”