Amid the growing energy crisis and the escalation of Ukraine war the Chancellor Rishi Sunak could be forced to deliver a second Budget within six months.
Global prices for energy, petrol and food has soared since the Russian invasion started on 24 February and oil has now reached triple figures.
Soaring inflation is continuing to bite for British families as petrol prices have now struck new record highs as the conflict in Ukraine helps to stoke the cost of living crisis further.
Stock markets ‘battle the threat of even higher inflation and a potential economic slowdown’ amid Ukraine war
Russia -Ukraine conflict could force millions of Brits ‘into fuel poverty’ who will face ‘eat or heat dilemma’
Financial experts have warned that “at some point soon consumers will not be able to cope with even higher prices.”
On 23 March the Chancellor is set to make a fiscal statement to the House of Commons but The Sun has reported this might have to be revised as a new Budget might have to be set.
Data firm Experian Catalist said the average cost of a litre of petrol at UK forecourts reached a new high of 153.50p on Thursday, up from 152.20p on Wednesday.
The RAC has urged for support from the Treasury as the cost of diesel rose from 155.79p to a record 157.47p.
Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said on Friday, if the invasion of Ukraine drives surges in commodity prices, inflation could yet strike more than 8%.
This week the price of wheat has hit a 14-year high which is one Ukraine’s largest exports putting the price of bread up.
Russ Mould, investment director at AJ Bell, said, “With the invasion of Ukraine by Russia now into its second week, stock markets continue to battle the threat of even higher inflation and a potential economic slowdown.
“If costs are going up again, corporates must either stomach lower profit margins or risk passing on the costs to the end user.
“At some point soon consumers will not be able to cope with even higher prices, so corporates face a big demand test.”