The UK's economy contracted by 0.1% in the second quarter, according to official estimates.

It follows a positive first quarter, in which the economy grew by 0.8%.

Last week, the Bank of England predicted that the UK will fall in to a recession by the autumn and could have more than a year of subsequent economic contraction.

Although there was some growth in April, May and June in service activities such as travel agencies as COVID-19 restrictions were lifted, the ending of the test and trace initiative dealt a blow to the economy.

"Health was the biggest reason the economy contracted as both the test and trace and vaccine programmes were wound down, while many retailers also had a tough quarter," said Darren Morgan, director of economic statistics at the Office for National Statistics.

"These were partially offset by growth in hotels, bars, hairdressers and outdoor events across the quarter, partly as a result of people celebrating the Platinum Jubilee."

There was a large fall in June of 0.6%, partly caused by the significant reduction in services spending as coronavirus test and trace was phased out, and partly because the Platinum Jubilee meant that there were two fewer working days that month.

The UK's economic performance was worse in the second quarter than that of countries such as Canada, Italy, France, and Germany, with underlying data showing that economic pressures were beginning to take hold on consumer spending.

Private consumption fell by 0.2% in the second quarter - an indication that record high prices for some products were stopping people from spending.

But it is too soon to say that the UK is in a recession, according to KPMG.

"It is too early to call a recession despite output fall," Yael Selfin, chief economist at KPMG UK, said.

"Households are already bruised by rising inflation, which is putting a squeeze on real incomes, while rising interest rates are making servicing mortgages less affordable," Ms Selfin said.

Nadhim Zahawi, the chancellor, told Sky News that he rejected the idea that the government had been asleep at the wheel throughout this crisis, and blamed Russian president Vladimir Putin for record energy prices.

"I don't recognise that," he said, pointing to an existing package of support which includes a £400 energy bill discount for all households.

But Mr Zahawi refused to say that more direct help for struggling families would be inevitable this winter.

"We're looking at all the options of what additional help we can deliver for families," he said.

On the subject of taxing the profits of energy companies, Mr Zahawi said: "There are no easy answers to this...every decision is a tough decision."

The latest data comes after dire forecasts from the Bank of England of a 15-month recession - five consecutive quarters of economic contraction.

Speaking after the Bank hiked interest rates by 50 basis points (0.5%) this month in an attempt to deal with the highest rate of inflation in more than 40 years, Governor Andrew Bailey said GDP would probably fall to 1.25% in 2023 and 0.25% in 2024.

If this forecast is borne out, it would be the first instance of two years of annual economic contraction since the 1960s.

But Ms Selfin said that KPMG was not as pessimistic as the central bank.

"We expect a slightly shorter and milder recession than the Bank of England pencilled in last week," she said.

"The main difference stems from our view that energy prices will eventually subside, contributing less to inflation, while the Bank's forecast means that prices stay elevated over the next three years."

People are facing massive rises in energy bills, with consultancy Cornwall Insight predicting that the price cap is expected to reach about £3,582 a year for the average household from October.

This is an increase from the £3,359 predicted earlier this month, and compares to the price cap last October of £1,277.