The Bank of England has admitted that there is a recession on the way in the UK as output continues to falter and inflation hits all areas of the economy.

Families are facing an uncertain time as they prepare for a further increase in the energy cap in the Autumn. The Central bank had been clinging to the hope that inflation could be continued, but Andrew Bailey’s acceptance that it could reach double figures in the coming months has introduced a sense of realism that had been sadly lacking recently.

With MPC members still using theoretical examples to explain their view on the economy, the need for action has not been more pressing since the 1970s.

Following the bank’s unanimous vote to hike rates to 1%, there were two warnings that sent a chill through financial markets.

They are better described as predictions rather than warnings. As recently as February, the bank’s economists were saying the inflation could reach 7% by the spring. Their prediction now is for prices to see a 10% increase year-on-year.

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