Bank of England chief Mervyn King: standard of living to plunge at fastest rate since 1920s

Households face the most dramatic squeeze in living standards since the 1920s, the Governor of the Bank of England warned, as he reacted to the shock disclosure that the economy was shrinking again.

By Robert Winnett, Deputy Political Editor
9:41PM GMT 25 Jan 2011
918 Comments

Families will see their disposable income eaten up as they “pay the inevitable priceâ€