the uk economy contracted in the three months through september as high energy prices and rising interest rates mark the beginning of what policy makers expect will be a longlasting recession that is likely to spread across europe in coming months the countrys gross domestic product was 02 lower in the third quarter compared to the three months through june the uks office for national statistics said on friday that was the first quartertoquarter decline in output since the first three months of 2021 when large parts of the economy were in lockdown to contain a surge in covid19 infections the bank of england last week forecast the recession will last through the end of next year and possibly beyond but despite the downturn the central bank said it is likely to raise its key interest rate again to combat a surge in consumer prices that saw the annual rate of inflation hit 101 in september adding to pressure on the uk economy the government will next week announce a series of tax hikes and spending cuts in an effort to narrow a shortfall in government finances