A typical UK family will spend £1,700 more per year on household costs in 2022, according to a forecast for BBC Panorama.
The analysis, conducted by the Centre for Economics and Business Research (CEBR), projected that the inflation rate would rise to 4.6% by Christmas. This rise is mainly due to higher fuel and energy prices.
Analysts at the CEBR say the full extent of rising costs is not yet being passed on to customers by supermarkets.
They say supermarkets are trying to keep prices constant over the festive period, even if this means absorbing some of the costs because they don’t want to risk losing customers at their busiest time of the year.
Compared with December 2020, the typical UK family of two adults and two children is predicted to spend £33.60 more per week as a result of inflation, adding up to £1,700 per year.
The forecast is based on the prices of commonly bought items, including food and drink, clothing and household goods. It also includes spending on utility bills such as fuel and power; transport costs; and money spent on recreation and days out.
It assumes that spending patterns will remain the same as in previous years and that inflation will remain at the projected 4.6% (up from the current 4.2%). However, experts expect that it could rise higher in spring 2022, putting further pressure on household spending.