Deutsche Bank has said it expects the UK’s Chancellor of the Exchequer Rishi Sunak will give £5-7.5bn in support to the UK’s poorest households to help them deal with the UK’s cost-of-living crisis.
The chancellor could increase universal credit payments, give money to food banks, and help poor households pay for energy bills, in a bid to soften the UK’s cost-of-living crisis, the bank said.
Deutsche Bank’s predictions come as global food prices hit their highest levels since 1991, according to figures from the United Nations Food and Agriculture Organisation (UN FAO).
Global food prices jumped by more than 12 per cent in February alone, to levels 37 higher than a year ago, the UN figures show.
The bank said food prices are rising at a faster rate than other consumer goods as it warned that a 50 year-on-year increase in energy prices, droughts in India, and the impacts on wheat prices of the war in Ukraine are causing food prices to soar.
Deutsche Bank said Sunak is likely to cave in to demands for extra support, by increasing universal credit payments, giving money to food banks, and helping poorer households pay for higher energy bills.