The investment bank has said that Britain will go into a recession in December 2022, until at least the beginning of 2024. Analysts at Citigroup predicted earlier this month that inflation could peak at almost 19 percent.

Goldman said: “In a scenario where gas prices remain elevated at current levels, we would expect the price cap to increase by over 80 per cent in January.”

An economist from the investment group said: “Concerns around cost of living pressures in the UK have continued to intensify on the back of the worsening energy crisis.

"Real consumption is still likely to decline significantly.”

The investment bank has also reconsidered its previous estimates the UK economy will grow next year.

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Daniel Hough, financial planner at Brewin Dolphin, looked towards a range of economists and commentators, who suggested the UK could soon be in recession.

He urged people to consider five key ways to prepare their finances for the potential downturn.

Firstly, he suggested creating a budget, but following this up by fixing a mortgage for as long as possible.

People should also make sure they have enough cash, with the expert suggesting at least six months’ worth of expenses.

Mr Hough also said people should keep hold of their investments but reassess risks.

Investments inherently come with risk, and so are not suitable for everyone.

Finally, he suggested pension contributions should be maintained as much as possible to secure a solid future for oneself.