Auxilione, a market analyst for energy, issues warning saying the average annual cost might exceed £5,300 come April.

The UK economy shrank to its first quarter of negative growth since Covid restrictions were fully eased in the spring of 2021, prompting a warning on Friday to Britons that the “worst is yet to come.”

Official GDP numbers were announced on Friday morning, showing a 0.6% decline in production in June. The numbers showed that the economy was now going backwards. Between April and June, GDP fell by 0.1%, even though most people thought it would recover significantly from the pandemic.

The data showed that the country’s economic future is getting worse, especially since the Bank of England said last week that inflation of more than 13% will cause a long recession.

It put more pressure on the government and the two Tory candidates running to be the next prime minister of Britain to find quick solutions to the country’s skyrocketing energy costs, which are expected to reach £5,300 per year by April of next year.

In an effort to downplay the numbers, Chancellor Nadhim Zahawi said he was certain the UK will “pull through” and that he was committed to working with the Bank to get “inflation under control and grow the economy.”

Major Brand Discounts

Even though the GDP results were better than expected, analysts and leaders of the opposition said they were a stark warning of the hard times to come.

Suren Thiru, director of economics at the Institute of Chartered Accountants, said, “The UK economy is sliding closer to recession, and the worst is yet to come.”

The CBI’s head economist, Alpesh Paleja, noted that although the third quarter of the year would see an improvement in the economy, growth will not be sustained.

“The forthcoming hike in Ofgem’s energy price cap will push inflation to new highs, leading to a significant downturn,” he warned.

“Vulnerable businesses and households will be squeezed further.”

Families were already getting ready for the Ofgem price ceiling to go up by 70% in October. Today, energy market consultant Auxilione warned that average annual costs could reach a high of over £5,300 next April.

According to the firm, the average annual energy costs may rise from £1,971 today to £3,628 in October before increasing once again to £4,538 in January and £5,277 in April. Government officials attribute the sudden increase in prices on the invasion of Ukraine.

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