“The UK is already in the midst of a recession, and inflation is on course to hit 14% later this year,” according to the British Chambers of Commerce (BCC) reports Bloomberg on early Friday morning in Asia. The analysis also mentioned the news as heaping more pressure on the nation’s new prime minister to act fast to avoid an economic calamity.

Elsewhere, the Financial Times (FT) said that the number of UK households in fuel poverty will more than double in January to at least 12mn unless the next prime minister takes “immediate” action to curb spiraling energy bills, a coalition of groups named “End Fuel Poverty” has warned.

Key quotes (from Bloomberg)

The business lobby group says it expects the economy to follow its second quarter contraction with two more periods of decline to round off the year before a meager bounceback of just 0.2% in 2023. 

It blames the crumbling outlook on rising energy costs and a decline in household spending and real wages, as well as weaker export prospects, poor investment conditions and weakening business confidence.

Inflation meanwhile will hit 14% this winter, according to the BCC, and be 5% by the end of 2023.

GBP/USD remains pressured

GBP/USD holds lower grounds near the 29-month bottom, taking rounds to 1.1550 by the press time.

Read: GBP/USD Price Analysis: Bulls are coming up for air but face strong bearish pressure