A report has warned that Britain is at risk of heading into a recession due to growing costs of living. An economic analyses of accounting company, KPMG has forecasted growth will more than halve to 3.2 % this year from 7.4 % in 2021, before toppled to 0.7 % in 2023. They have also predict that the gross domestic product (GDP) falling in two or more successive quarters with output dropping by 1.5 % in the year 2022 and in the year 2023 quarter three which is the another cause of effective recession.

Escalating cost of living

Domestic incomes have already come under pressure, the impact of those energy prices feeding into families’ bills and pushing their ability to spend and that will cause a recession. With inflation now running at 9.1 percent, but are expected to fall by 0.8 percent in real terms this year and 0.5 percent the following year, according to KPMG.

Inflation now running at 9.1 %

The Other warning for the bank is that on top of that already in the face of that, we’re going to see double digit inflation show the first time that UK inflation the consumer price index got above 10 since the early 1980s so that combination of recession stagnant growth essentially ends of the year also double digit inflation.