Inflation storm to cost average UK household $2,900 this year: Bloomberg

RIYADH: Rising inflation will see 2,370 pounds ($2,900) accumulate on average British household bills this year, adding new pressure on the Bank of England and the government there to step up their response to the cost of living crisis, Bloomberg reported. 

With wages dwindling behind price gains and the government raising taxes, a report from Bloomberg Economics predicted a drop in inflation-adjusted disposable income of about 3.4 percent this year, the biggest drop ever.

Meanwhile, a Bloomberg survey estimated the probability of a recession at 40 percent, up from 28 percent last month, and the highest since January 2021 during the third coronavirus shutdown.