Brits warned to ‘prepare for an environment of high inflation’ which is now predicted to hit by more than 22 per cent

The global energy crisis threatens to put inflation up by 22.4% Goldman Sachs has warned and by January the price cap could increase by over 80%.

They have also warned that by December the UK will go into a recession until at least 2024 and the investment bank also estimated that the UK economy will grow in 2023.

Goldman Sachs said, “In a scenario where gas prices remain elevated at current levels, we would expect the price cap to increase by over 80% in January.”

An economist from the firm said, “Concerns around cost of living pressures in the UK have continued to intensify on the back of the worsening energy crisis.

Read more on the cost of living and energy crisis:

Surging food prices continue driving revenue growth with the global food industry to hit $10 trillion in value by 2024

British Gas quotes pub an eye watering £61,667 for an annual electric bill with a warning it will be ‘lights off for many’

Ofgem faces legal action in the High Court for raising the price cap which will ‘devastate families’ as energy bills crisis is out of control

Union chief calls for a year of strikes ‘and not be dictated’ by those from ‘Eton and Harrow’ telling us ‘to give up our wages’

“Real consumption is still likely to decline significantly.”

Goldman Sachs CEO, David Solomon, said in July that the odds of a recession were greater than normal by the end of this year.

Speaking to CNN, Solomon said people must now “prepare for an environment of high inflation.”

He warned, “there’s a good chance that we haven’t reached the peak yet.”

He added, “Anytime you have high inflation and go through an economic tightening, you wind up having some sort of an economic slowdown.

“So, I think the chances that we have a recession are high.”