The Resolution Foundation forecasts that a typical household’s income will fall by about £1,000 this year once the full effects of inflation is accounted for which is the biggest real-terms fall in incomes since the mid-1970s.
A government spokesperson said it recognised the pressures households are facing.
The Resolution Foundation said the Ukraine conflict would push up living costs even further as the prices of fuel and other goods surged.
The cost of living crisis has only just begun. Once again the political class will try and divert your attention to the real cause which is the Global Central Banking CARTEL! pic.twitter.com/ENtyDfV6Y7
— UNN (@UnityNewsNet) March 5, 2022
It expects inflation, which measures how the cost of living changes over time, to peak in April at 8.3%. That is much higher the Bank of England’s forecast of 7.25% back in February.
“The crisis in Ukraine has increased both the scale of price rises but also the degree of uncertainty about their levels and duration,” the Foundation’s report said.
“The UK’s post-Covid economic recovery is well under way, but a deep living standards downturn is just getting going,” it added, also warning that wages are not forecast to grow particularly fast either.
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