2025 Mar 14, 10:46
Prices are anticipated to rise at a slower rate next year, providing some relief to household finances, according to PwC. The professional services group has predicted that as inflation falls and incomes rise, the cost of living crisis will ease. PwC believes that the economy will see improvement in 2024, with a decrease in inflation and an increase in household incomes leading to a modest recovery. These predictions place Britain as the fourth-best-performing economy in the G7 next year, surpassing France, Germany, and Japan but trailing behind the United States, Canada, and Italy
Compared to pre-pandemic levels in 2019, the size of the economy is expected to be 2.7 per cent larger on average. PwC also forecasts a significant drop in energy costs, along with the impact of high interest rates on the economy, contributing to a consumer price inflation close to the Bank of England's 2 per cent target.