Russia sanctions ‘to cut UK living standards by £2,500 per household’

Centre for Economics and Business Research halves growth forecast and says inflation expected to remain at 7% until 2023

The shockwaves from the Russian invasion of Ukraine will cut UK living standards by 2,500 per household, lead to more persistent inflationary pressure and slow the economy to a standstill next year, economists fear.

Following reports of an escalation of the west's economic measures against the Kremlin, forecasters have cut their estimates of growth in 2022 and 2023 and become gloomier about the outlook for the cost of living.