Combined with rising costs of other essential bills such as energy he predicted rising interest rates would “crush the ability to spend” and could lead to a household debt crisis.
Evidence has already suggested credit card borrowing is rising as households struggle to balance the books.
The situation is also of concern to businesses dealing with rising costs.
Chair of the Federation of Small Businesses Martin McTague warned: “When we spoke to members over the first lockdown, the majority were carrying debt, and four in ten were concerned that their debt was now ‘unmanageable’.”
He added: “Consider the electrician who is trying to manage surging fuel prices and the costs of supply chain disruption at work, whilst also being hit by spiralling utility bills and, now, higher mortgage repayments at home.”