Biggest UK house price jump since 2006; Nikkei’s highest year-end close since 1989 – as it happened

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Retailers are likely to increase their prices early next year, intensifying the cost of living squeeze on households.

The trend is already underway, with the UK branch of IKEA announcing price increases; due to higher costs across the supply chain, including raw materials, transport and logistics.

Most companies cannot absorb the costs anymore and will pass them on to consumers. In the case of the United Kingdom, the situation is even worse due to post-Brexit supply chain disruptions. In these circumstances, it is unlikely that inflation will significantly move downward in the short term, at least.

The London-based think tank the Resolution Foundation estimates that UK households will face a 1,200 hit to their budget on average in 2022 due to higher inflation, soaring energy prices and big tax rise to come in April. Supply chain disruptions will also remain.