Uk Inflation Could Top 22 As Energy Prices Soar Goldman Sachs Warns

Richard Baker | In pictures | Getty Images LONDON — Inflation in the UK could soar above 22% next year if energy prices continue their upward trend, US investment bank Goldman Sachs has warned. In a research note on Monday, Goldman said headline inflation could peak at 22.4% and Gross Domestic Product could fall 3.4% if energy costs continue to rise at their current rate. It comes after British households were hit with a predicted 80% rise in energy bills in the coming months, taking the average annual household bill to £3,549 ($4,197) from £1,971 and exacerbating the country’s existing cost of living crisis. Britain’s energy regulator said on Friday it would raise its basic cap on energy bills from October 1 to keep up with rising wholesale gas prices, which have risen by 145% in the UK since the authorities July. Ofgem is due to recalculate its price cap in three months. But Goldman said that if prices remain “persistently higher,” another 80 percent increase could be possible. “In a scenario where natural gas prices remain high at current levels, we would expect the price cap to rise by over 80% in January … which would mean headline inflation peaking at 22.4%, » Goldman economists, led by Sven Jari Stehn. he said in the note. If energy prices hold, however, UK inflation is likely to hit 14.8% in January, Goldman commodities analysts forecast — well above the 13.3% forecast by the Bank of England earlier this year per month. The bank also said the UK was likely to slip into recession in the fourth quarter. It forecasts that the UK economy will contract by -0.3% on a non-annual basis in the fourth quarter of this year, followed by -0.4% and -0.3% in the first and second quarters of 2023, respectively. “We now expect the deepening cost of living crisis to push the UK economy into recession later this year,” the note said. Goldman’s outlook is the latest gloomy forecast for the UK economy, with Citi last week forecasting UK inflation to top 18% in January 2023.

title: “Uk Inflation Could Top 22 As Energy Prices Soar Goldman Sachs Warns Klmat” ShowToc: true date: “2022-12-07” author: “Marguerite Hesselschward”

Richard Baker | In pictures | Getty Images LONDON — Inflation in the UK could soar above 22% next year if energy prices continue their upward trend, US investment bank Goldman Sachs has warned. In a research note on Monday, Goldman said headline inflation could peak at 22.4% and Gross Domestic Product could fall 3.4% if energy costs continue to rise at their current rate. It comes after British households were hit with a predicted 80% rise in energy bills in the coming months, taking the average annual household bill to £3,549 ($4,197) from £1,971 and exacerbating the country’s existing cost of living crisis. Britain’s energy regulator said on Friday it would raise its basic cap on energy bills from October 1 to keep up with rising wholesale gas prices, which have risen by 145% in the UK since the authorities July. Ofgem is due to recalculate its price cap in three months. But Goldman said that if prices remain “persistently higher,” another 80 percent increase could be possible. “In a scenario where natural gas prices remain high at current levels, we would expect the price cap to rise by over 80% in January … which would mean headline inflation peaking at 22.4%, » Goldman economists, led by Sven Jari Stehn. he said in the note. If energy prices hold, however, UK inflation is likely to hit 14.8% in January, Goldman commodities analysts forecast — well above the 13.3% forecast by the Bank of England earlier this year per month. The bank also said the UK was likely to slip into recession in the fourth quarter. It forecasts that the UK economy will contract by -0.3% on a non-annual basis in the fourth quarter of this year, followed by -0.4% and -0.3% in the first and second quarters of 2023, respectively. “We now expect the deepening cost of living crisis to push the UK economy into recession later this year,” the note said. Goldman’s outlook is the latest gloomy forecast for the UK economy, with Citi last week forecasting UK inflation to top 18% in January 2023.

title: “Uk Inflation Could Top 22 As Energy Prices Soar Goldman Sachs Warns Klmat” ShowToc: true date: “2022-12-09” author: “Timothy Mcswain”

Richard Baker | In pictures | Getty Images LONDON — Inflation in the UK could soar above 22% next year if energy prices continue their upward trend, US investment bank Goldman Sachs has warned. In a research note on Monday, Goldman said headline inflation could peak at 22.4% and Gross Domestic Product could fall 3.4% if energy costs continue to rise at their current rate. It comes after British households were hit with a predicted 80% rise in energy bills in the coming months, taking the average annual household bill to £3,549 ($4,197) from £1,971 and exacerbating the country’s existing cost of living crisis. Britain’s energy regulator said on Friday it would raise its basic cap on energy bills from October 1 to keep up with rising wholesale gas prices, which have risen by 145% in the UK since the authorities July. Ofgem is due to recalculate its price cap in three months. But Goldman said that if prices remain “persistently higher,” another 80 percent increase could be possible. “In a scenario where natural gas prices remain high at current levels, we would expect the price cap to rise by over 80% in January … which would mean headline inflation peaking at 22.4%, » Goldman economists, led by Sven Jari Stehn. he said in the note. If energy prices hold, however, UK inflation is likely to hit 14.8% in January, Goldman commodities analysts forecast — well above the 13.3% forecast by the Bank of England earlier this year per month. The bank also said the UK was likely to slip into recession in the fourth quarter. It forecasts that the UK economy will contract by -0.3% on a non-annual basis in the fourth quarter of this year, followed by -0.4% and -0.3% in the first and second quarters of 2023, respectively. “We now expect the deepening cost of living crisis to push the UK economy into recession later this year,” the note said. Goldman’s outlook is the latest gloomy forecast for the UK economy, with Citi last week forecasting UK inflation to top 18% in January 2023.

title: “Uk Inflation Could Top 22 As Energy Prices Soar Goldman Sachs Warns Klmat” ShowToc: true date: “2022-11-24” author: “Paul Warner”

Richard Baker | In pictures | Getty Images LONDON — Inflation in the UK could soar above 22% next year if energy prices continue their upward trend, US investment bank Goldman Sachs has warned. In a research note on Monday, Goldman said headline inflation could peak at 22.4% and Gross Domestic Product could fall 3.4% if energy costs continue to rise at their current rate. It comes after British households were hit with a predicted 80% rise in energy bills in the coming months, taking the average annual household bill to £3,549 ($4,197) from £1,971 and exacerbating the country’s existing cost of living crisis. Britain’s energy regulator said on Friday it would raise its basic cap on energy bills from October 1 to keep up with rising wholesale gas prices, which have risen by 145% in the UK since the authorities July. Ofgem is due to recalculate its price cap in three months. But Goldman said that if prices remain “persistently higher,” another 80 percent increase could be possible. “In a scenario where natural gas prices remain high at current levels, we would expect the price cap to rise by over 80% in January … which would mean headline inflation peaking at 22.4%, » Goldman economists, led by Sven Jari Stehn. he said in the note. If energy prices hold, however, UK inflation is likely to hit 14.8% in January, Goldman commodities analysts forecast — well above the 13.3% forecast by the Bank of England earlier this year per month. The bank also said the UK was likely to slip into recession in the fourth quarter. It forecasts that the UK economy will contract by -0.3% on a non-annual basis in the fourth quarter of this year, followed by -0.4% and -0.3% in the first and second quarters of 2023, respectively. “We now expect the deepening cost of living crisis to push the UK economy into recession later this year,” the note said. Goldman’s outlook is the latest gloomy forecast for the UK economy, with Citi last week forecasting UK inflation to top 18% in January 2023.