Cost of living squeeze could push UK into ‘mild recession’; petrol price hits fresh highs – as it happened

Rolling coverage of the latest economic and financial news

• Latest: Petrol and diesel hit records last weekend
• RAC: It's rocket and feather' pricing
• KPMG: Cost of living squeeze could push UK economy into recession
• Risk of downturns in US and eurozone too
• Russia set for first default in decades

Motoring group RAC say UK fuel retailers are engaging in rocket and feather' pricing, after petrol and diesel both touched record highs over the weekend.

Prices at the pumps jumped sharply (over the last few months as wholesale prices have risen.

We are struggling to see how retailers can justify continuing to put up their unleaded prices as the wholesale cost of petrol has reduced significantly.

This is sadly a classic example of rocket and feather' pricing in action, and one which the Competition and Markets Authority will no doubt be looking at very closely. It seems as if retailers are making matters worse for themselves by not lowering their forecourt prices despite having a clear opportunity to do so.