U.S. investment bank Goldman Sachs has gone even further than its Wall Street rival Citibank in predicting that inflation in the UK could reach 22% next year.

Last week, Citibank made a prediction that price rises in the UK could top 17% but Goldman believes that the energy crisis could push inflation even higher with the Bank of England helpless to bring it back under control.

The hospitality sector, which is only now recovering from the battering it took during the Pandemic, is facing further devastation with its trade body writing an open letter to the Government yesterday pleading for assistance with the warning that pubs and restaurants could be forced out of business as they face up to 400% increases in utility bills.

There is no energy price cap for commercial enterprises, so the sector faces the full force of the continued rise in gas prices.

The letter went on to say that owners are now unable to pass on increases to their customers, as they will lose up to 80% of their business. Already faced with their own fears over energy cost, consumers are unlikely to spend an evening in a pub or restaurant if prices rise out of hand.