A recent Bloomberg survey conducted with financial professionals and retail investors shows that Britons are set to experience a larger drop in living standards than their peers in other developed countries. Inflation in the UK is predicted to outpace pay rises to a greater extent than in any other G7 country.
According to the survey, the country with the biggest drop in standard of living is the UK, with almost 40% of respondents predicting this outcome. This is almost double the percentage of those predicting Italy to be the worst affected. Inflation has hit essentials such as energy and grocery bills even harder than the official headline rate of 10.1%, currently estimated to be around 19.5%.
This news is particularly concerning, given that the UK is already experiencing high levels of food inflation, at 19.5% in 2023 alone. This figure doesn't take into account previous years, which means that the situation could be even worse. Despite assurances from officials that inflation will decrease and the economy will improve the data and charts suggest that the opposite is true.
It's worth noting that this isn't the first time concerns have been raised about the UK's economic future. For the past two years, there have been warnings of major issues on the horizon. However, even these forecasts have been outstripped by the severity of the current situation.
It's clear that the UK is facing a tough road ahead, and things are unlikely to improve anytime soon. This is why it's crucial for individuals and businesses in the UK to start preparing for the worst-case scenario. With the announcement of a new Central Bank digital currency for the Bank of England, there are further concerns about the potential implications of this move. We'll be diving into this topic in a future video, so stay tuned for more information.
In conclusion, it's essential for those in the UK to pay close attention to the data and prepare for what's to come. The survey results suggest that the situation is worse than previously thought, and there's no telling how long it will take for the economy to recover.
Source:
Neil McCoy-Ward, 9 May 2023, "A Dire WARNING For UK Citizens...",