UK economy set for record growth but Brits will be £1,700 a year worse off, research finds

THE UK will enjoy the fastest growth of any advanced economy this year and next, international economists say.

But the Christmas cheer went flat after separate research warned rising fuel and food bills will leave Brits £1,700 a year worse off.

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Consumers will really start to feel the pinch in January — but inflation will still mean the festive season will cost households £109 more than last year.

The Organisation for Economic Co-operation and Development (OECD) had given Britain a boost when it said the UK will outstrip all other G7 economies — with growth of 6.9 per cent this year and 4.7 per cent next.

The US will see 5.6 per cent growth in 2021 — and Germany will manage just 2.9 per cent.

But the OECD’s chief economist, Laurence Boone, cautioned the recovery could stall. She said: “Omicron is adding to high levels of uncertainty and risks.”

Meanwhile, the Centre of Economics and Business Research (CEBR) found that most household staples have risen in price. Margarine costs 15.7 per cent more, while lamb, crisps, fruit, turkey and pork are all dearer.

Kay Neufeld, from the CEBR, said: “Inflation is expected to stand above 4.5 percent by the time Christmas comes around.”

However, the AA said petrol prices have eased for the first time since November 2020. They hit a record 147.72p a litre last month, but dipped to 147.28p.