Food and fuel costs are eventually likely to fall as people can no longer afford to buy them, an economist at Defaqto has predicted.
According to Michael Baxter this means that although the UK's economy will recover this is not likely to happen until 2010.
Mr Baxter said that as prices fall "suddenly we will find affordability start improving again".
He added that this "is where the recovery will come, but that probably won't be until 2010 I think".
Both the US and UK economy and banking sectors have seen a great deal of change recently with the Lehman Brothers filing for bankruptcy and the merger between Lloyds TSB and HBOS.
As a result, the Lloyds TSB Corporate Markets Business Barometer has revealed that 53 per cent of companies are pessimistic about the prospects for UK businesses.
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