Britons face catastrophic hit to living standards The Centre for Economics and Business Research predicts UK economic growth will halve this year to 1.9% and fall to zero in 2023. The consultancy expects inflation to stay above 7% until the beginning of next year and go as high as 8.7%in the spring. Soaring inflation combined with steep tax hikes leads the CEBR to estimate living standards in the UK will drop at the worst rate since records began in the mid-1950s – by an estimated £71bn – which amounts to £2,553 per household. The CEBR said the projections will put the Chancellor under more pressure “to put the economy on a semi wartime setting on 23 March”. Separately, the Bank of England is set to send rates to the highest level since just after the financial crisis in a bid to tame runaway inflation triggered by the Russia-Ukraine conflict. According to Bank of America, the BoE will focus on eradicating an average inflation rate of 7% this year by hiking rates at each of its next five meetings, taking borrowing costs to 1.75% by November. Poor wage growth coupled with elevated inflation will erode real incomes at the worst rate since at least 1955, Bank of America said, adding that household consumption, which accounts for around 60% of UK output, will stagnate for the next 18 months.