THE GUARDIAN: Forecasts updated after 25% and 7% rally in gas and electricity prices respectively last week
Inflation in the UK will hit 18% early next year as consumers count the cost of the deepening energy crisis, one of the world’s biggest banks has predicted.
Forecasters at the US financial services group Citi said it expects the consumer prices index to breach 18% in the first quarter of 2023, while the retail prices index inflation rate will soar to 21%.
The prediction outstrips previous modelling of the impact of rising costs. Earlier this month the Bank of England said it expected inflation to reach 13% by the end of the year as it raised interest rates for a sixth successive time.
Separately, the Resolution Foundation thinktank has forecast inflation could reach as high as 15% by early 2023.
However, on Monday Citi said the inflation rate was likely to be even higher next year with a peak of more than 18% in January. » | Alex Lawson, Energy correspondent | Monday, August 22, 2022
