While the increases are not expected to reach the catastrophic levels seen after Russia’s invasion of Ukraine in 2022, the pressure on households is still expected to be severe — especially for families already struggling financially.
Experts warn the effects will spread far beyond fuel and electricity.
As energy prices climb, the cost of transporting goods and producing food also rises. The Bank now expects food inflation to accelerate again in the coming months, potentially pushing supermarket prices sharply higher.
Basic necessities such as bread, milk, meat, vegetables, and household essentials could become increasingly expensive as businesses pass higher operating costs onto consumers.
Low-income households are expected to suffer the most because essentials already consume a larger portion of their monthly income.
The Bank also highlighted another worrying trend: many poorer families no longer have savings to fall back on.
During the Covid pandemic, some households managed to build emergency savings due to reduced spending during lockdowns. But years of inflation and rising living costs have now wiped out much of that financial cushion.
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