According to the Bank, real household disposable income and real post-tax labour income - two measures of the impact on families - will both fall sharply this year as those energy price rises feed through into the system.
The Bank slashed its forecast for gross domestic product growth next year from 1.25% to -0.25% - the closest it ever tends to come to forecasting a recession.
The Bank takes a big red pen to its earlier forecasts and sees a risk of economic contraction ahead as inflation is now predicted to surge to levels not seen for four decades.
news.sky.com