The Russian invasion of Ukraine has entered the second month and amid the one-month conflict, it is featured the United Kingdom economy may step into unwanted recession as inflation is rising to historic levels. The energy and food prices in the country have been triggered and it is estimated the cost of living for poor families may jump by about 10 percent.
Meanwhile, consumer spending is witnessed to have been pulled back by low and middle-income groups due to squeezed budgets and the probability of recession in the near future.
People had been lately bracing historic fall in living standards due to lagging wages compared to rising prices of necessary items including food and energy. It is being warned the spending power may further fall and even to the worst rate in about five decades. Some experts are arguing that inflation may rise as high as 10 percent this year due to a rise in energy bills. The real income may drop by about 1,000 pounds in 2022.
Meanwhile, the prices of natural gas have hit a record high and oil prices are rising beyond expectation based on energy supply concern amid Russia's continuedassault on Ukraine. It is assumed the living standards may not recover in 2022 as the rise in inflation rate is high and the risk of recession is prevailing.
Chancellor Rishi Sunak earlier said more fiscal support could be on the card to soften the inflation blow. It is believed some giveaways could be announced soon.
However, if inflation continues rising at a rapid speed, the debt interest of the government would be swollen up and the figure may stand at around 30 billion pounds by the end of this year or early 2023.
Meanwhile, news from the war zone reveals Russia has continued the missile strikes on Ukrainian cities and the targets including food and fuel storage depots. Ukraine president Volodymyr Zelenskyy lately urged the energy-producing countries to increase the production of oil which may lead to halting Russia's blackmailing to other nations.
United States president Joe Biden met refugees of Ukraine in Poland and said Russian President Putin should not remain in power. The White House later clarified that the statement did not mean regime change, but Putin should not exercise his power over neighboring countries.
Nearly 4 million Ukrainians have been displaced amid the month-long conflict and Russia is now being accused by the Western allies of multiple war crimes.
If the war continues further, a significant shortage of oil and gas supplies could be witnessed in Europe as the countries are highly dependent on Russia to meet the domestic demands.