LONDON, (Reuters) – The UK’s economy is expected to grow slower than anticipated and the inflation rate will rise significantly. Rishi Sunak gave a budget update that included measures to reduce the cost of living squeeze.

Sunak made public forecasts by the Office for Budget Responsibility on Wednesday, saying that the economy would likely grow by 3.8% by 2022. That’s a drastic decrease in growth from the 6.0% forecasted in October.

According to the Consumer Price Index, inflation is currently at 7.4% by 2022. This compares with October’s estimate of 4.0%.

Sunak has been pressured to provide more assistance to Britons facing the worst cost of living squeeze for at least thirty years. He announced that a 5pc per litre fuel duty cut would be implemented starting Wednesday night and continuing until March 2013.

Data from earlier indicated that Britain’s consumer prices inflation hit 6.2% for the first time in 30 years. The rise was driven by rising energy and food costs, which are difficult to reduce, especially for those with lower incomes.

According to the International Monetary Fund, British GDP will increase by 4.7% between 2022 and 2022. This is the highest growth rate among Group of Seven countries. British economic growth was 7%, after a COVID-19 decline of over 9% in 2020.

Sunak reported that OBR had predicted that gross domestic products would rise by 1.8%, 2.1%, 1.8% and 1.8% between 2023, 2024, 2025 and 2025.

The OBR forecasted growth rates of 1.3%, 2.1% and 1.6% for the next three-years in October.