Inflation could surge to 15 per cent in the winter, according to forecasts from the consultancy arm of EY, highlighting the scale of the challenges facing businesses and households in the months ahead.
The worst-case scenario from the wellregarded economists at EY-Parthenon is based on the premise that President Putin blocks gas supplies to Europe, food prices soar and inflation expectations become entrenched among the population.
Inflation, which is now at a 40-year high after hitting 9.4 per cent in June, is a key focus in the Conversative leadership contest. Rishi Sunak, who is battling with Liz Truss to become prime minister, declared yesterday that the cost of living is the “number one challenge we face”.
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