Oliver Mangan: British economy running on empty with inflation seen peaking at eye-watering 13%

Bank of England forecasts recession for British economy next year, with incomes declining by almost 4%

Surge in gas prices is doing the real damage to disposable income of British households, according to Bank of England.

The Bank of England report last week on monetary policy caught people’s attention by laying bare the impact of soaring energy costs on the UK economy. 

Inflation is now seen peaking at an eye-watering 13% this autumn, up from its previous forecast in May of about 10%, reflecting, in particular, the further very steep increase in the price of natural gas over the summer amid falling Russian exports of the product to Europe.