Underscoring the pressure on households and businesses, the US investment bank said inflation could peak at 22.4% next year if wholesale gas and electricity prices continue to rise over the winter. In a scenario where prices “remain elevated at current levels”, economists at the bank said Ofgem’s energy price cap for household bills could rise by more than 80% in January. That would mean headline inflation would peak at 22.4%. Inflation rose above 10% for the first time since the early 1980s in July, fueled by rising wholesale energy prices and rising costs of staples. Inflation reached a post-war record high of 24.5% in August 1975. UK wholesale gas prices have risen 145% since early July amid fears of shortages this winter as Russia cuts supplies to Europe. Goldman said it did not expect the recent jump in gas prices in Europe to continue, meaning inflation is more likely to peak near 15% early next year. Natural gas prices have fallen in recent days after Germany’s economy minister said its storage facilities reached 85% of capacity, more than expected. The EU is also preparing to take “emergency interventions” that could help reduce today’s rising prices. Goldman’s forecast is the latest eye-popping estimate for UK inflation, beating US bank Citi’s forecast of a peak of 18.6% next year. The Bank of England has predicted a peak of over 13%. More to come…
title: “Energy Prices Could Push Uk Inflation To 22 Near Post War Record Inflation Klmat” ShowToc: true date: “2022-10-21” author: “Hilton Brown”
Underscoring the pressure on households and businesses, the US investment bank said inflation could peak at 22.4% next year if wholesale gas and electricity prices continue to rise over the winter. In a scenario where prices “remain elevated at current levels”, economists at the bank said Ofgem’s energy price cap for household bills could rise by more than 80% in January. That would mean headline inflation would peak at 22.4%. Inflation rose above 10% for the first time since the early 1980s in July, fueled by rising wholesale energy prices and rising costs of staples. Inflation reached a post-war record high of 24.5% in August 1975. UK wholesale gas prices have risen 145% since early July amid fears of shortages this winter as Russia cuts supplies to Europe. Goldman said it did not expect the recent jump in gas prices in Europe to continue, meaning inflation is more likely to peak near 15% early next year. Natural gas prices have fallen in recent days after Germany’s economy minister said its storage facilities reached 85% of capacity, more than expected. The EU is also preparing to take “emergency interventions” that could help reduce today’s rising prices. Goldman’s forecast is the latest eye-popping estimate for UK inflation, beating US bank Citi’s forecast of a peak of 18.6% next year. The Bank of England has predicted a peak of over 13%. More to come…
title: “Energy Prices Could Push Uk Inflation To 22 Near Post War Record Inflation Klmat” ShowToc: true date: “2022-12-14” author: “Erin Crumble”
Underscoring the pressure on households and businesses, the US investment bank said inflation could peak at 22.4% next year if wholesale gas and electricity prices continue to rise over the winter. In a scenario where prices “remain elevated at current levels”, economists at the bank said Ofgem’s energy price cap for household bills could rise by more than 80% in January. That would mean headline inflation would peak at 22.4%. Inflation rose above 10% for the first time since the early 1980s in July, fueled by rising wholesale energy prices and rising costs of staples. Inflation reached a post-war record high of 24.5% in August 1975. UK wholesale gas prices have risen 145% since early July amid fears of shortages this winter as Russia cuts supplies to Europe. Goldman said it did not expect the recent jump in gas prices in Europe to continue, meaning inflation is more likely to peak near 15% early next year. Natural gas prices have fallen in recent days after Germany’s economy minister said its storage facilities reached 85% of capacity, more than expected. The EU is also preparing to take “emergency interventions” that could help reduce today’s rising prices. Goldman’s forecast is the latest eye-popping estimate for UK inflation, beating US bank Citi’s forecast of a peak of 18.6% next year. The Bank of England has predicted a peak of over 13%. More to come…
title: “Energy Prices Could Push Uk Inflation To 22 Near Post War Record Inflation Klmat” ShowToc: true date: “2022-11-09” author: “Emily Horner”
Underscoring the pressure on households and businesses, the US investment bank said inflation could peak at 22.4% next year if wholesale gas and electricity prices continue to rise over the winter. In a scenario where prices “remain elevated at current levels”, economists at the bank said Ofgem’s energy price cap for household bills could rise by more than 80% in January. That would mean headline inflation would peak at 22.4%. Inflation rose above 10% for the first time since the early 1980s in July, fueled by rising wholesale energy prices and rising costs of staples. Inflation reached a post-war record high of 24.5% in August 1975. UK wholesale gas prices have risen 145% since early July amid fears of shortages this winter as Russia cuts supplies to Europe. Goldman said it did not expect the recent jump in gas prices in Europe to continue, meaning inflation is more likely to peak near 15% early next year. Natural gas prices have fallen in recent days after Germany’s economy minister said its storage facilities reached 85% of capacity, more than expected. The EU is also preparing to take “emergency interventions” that could help reduce today’s rising prices. Goldman’s forecast is the latest eye-popping estimate for UK inflation, beating US bank Citi’s forecast of a peak of 18.6% next year. The Bank of England has predicted a peak of over 13%. More to come…
