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.
Financial experts have warned that “at some point soon consumers will not be able to cope with even higher prices.”
Data from Experian Catalist said the average cost of a litre of petrol at UK forecourts has 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 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.”