The Bank of England has warned the UK will fall into recession as it raised interest rates by the most in 27 years.
The announcement comes after as the bank forecasts that the war in Ukraine would fuel further inflation and tip the UK economy into a prolonged recession.
The economy is forecast to shrink in the last three months of this year and keep shrinking until the end of 2023.
Inflation is expected to slow to 9.5% in the third quarter of 2023 and drop in line with the 2% target a year later, the central bank forecast.
The inflation picture has worsened in recent months as Russia cut natural gas shipments to Europe in retaliation for the west's support of Ukraine. That has triggered unprecedented increases in energy prices worldwide.