"While the country continues to count the social cost of the Pandemic, the financial fallout is just beginning.

The National Institute of Economic and Social Research, the longest established research institute in the United Kingdom, predicts that inflation will reach a peak of 7% in April and go on to average 5.9% throughout 2022, and falling to 3.3% next year.

There are expected to be three more interest rate hikes his year with more to follow in 2023. The risk is skewed heavily towards the possible need for more hikes should inflation prove to be stubborn.

The institute criticized the Bank of England’s policy of remaining reactive to inflation rather than getting ahead of the curve.

It is easier to look back to see mistakes that have been made. In real time, making decisions about the direction and ferocity of the rise in inflation coupled with providing sufficient support to ensure that any nascent recovery is not choked off is more difficult.

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