The Deloitte Economic Review said that the housing market would suffer the most with prices falling by 5% this year alone.
The rocketing cost of oil has led to a downturn in the economy with food prices also suffering, an anonymous source from the Bank of England spoke about an economic slump and called for further rates to be cut back.
Mr Luther Mayers a student at Brunel University spoke of the rising cost of food saying, "I could buy my milk without checking my wallet but now everything cost so much its ridiculous and I am only 21", his views were echoed by Elizanne Nelson who also spoke about "rising cost"
Deloitte Economic Review said prices would drop by 8% in 2009, and in comparison to similar economic situation in 2005, the U.K would not be bailed out by the booming world economy which is also suffering a decline.
The pound is said to have fallen to the lowest level in five years and the Bank of England governor Mervyn King has joined the bandwagon forecasting recessions in the World Economy.
The Swiss Bank UBS warned the U.K will suffe the deepest recession of any major economy.
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