Raging inflation is taking a toll on households which are forced to cut spending
The UK economy contracted in the three months to June, dropping 0.1% as soaring inflation slowed spending activity, according to data revealed by the Office for National Statistics on Friday.
The decline was less than the 0.3% contraction expected by analysts, and followed a drop of 0.8% in the first quarter of 2022. Monthly estimates revealed that that GDP fell by 0.6% in June, following a 0.4% increase in May.
The latest data pointed to growing weakness among consumer-facing sectors of the economy as Brits have to deal with inflation reaching a 40-year high. Inflation hit 9.4% in July, and is projected to continue rising through to autumn.
The ONS reported a 0.2% fall in household consumption in the second quarter, offset by a positive contribution from net trade.
The Bank of England warned last week that it expects the UK economy to enter its longest…
