Consumers will really start to feel the pinch in January — but inflation will still mean the festive season will cost households £109 more than last year.
The Organisation for Economic Co-operation and Development (OECD) had given Britain a boost when it said the UK will outstrip all other G7 economies — with growth of 6.9 per cent this year and 4.7 per cent next.
The US will see 5.6 per cent growth in 2021 — and Germany will manage just 2.9 per cent.
But the OECD’s chief economist, Laurence Boone, cautioned the recovery could stall. She said: “Omicron is adding to high levels of uncertainty and risks.”
Meanwhile, the Centre of Economics and Business Research (CEBR) found that most household staples have risen in price. Margarine costs 15.7 per cent more, while lamb, crisps, fruit, turkey and pork are all dearer.
Kay Neufeld, from the CEBR, said: “Inflation is expected to stand above 4.5 percent by the time Christmas comes around.”