Rocketing prices will cost average British family more than £1,359 a year, economists warn

ROCKETING prices will cost the average British family more than £1,359 a year, economists warned yesterday.

The Bank of England’s inflation forecast of four per cent will add an extra £100 to a typical household’s monthly outgoings.

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It would mean a weekly grocery bill leap of £2.54 by Christmas, the Institute for Economic Affairs warned.

Average heating and lighting bills for 11million homes will also soar by £139 a year under plans to raise the energy cap.

IEA analyst Alexander Hammond said: “The Bank of England must stop quantitative easing and we should avoid any tax increases.”

“However, to make matters worse, this is a severe underestimation of the situation that the UK’s economy finds itself in.

The Bank of England must immediately stop its obsession with quantitative easing, and we should avoid any tax increases which would put further pressure on the British consumer.”

This post first appeared on thesun.co.uk