Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

UK Inflation to Rise Past 18% in Gas Crisis, Citigroup Says

by August 22, 2022
August 22, 2022
UK Inflation to Rise Past 18% in Gas Crisis, Citigroup Says

UK inflation is on track to rise above 18% for the first time in almost half a century next year as energy prices rocket, according to the investment bank Citigroup.

Using forecasts for the retail energy price cap, which analysts expect to rise to close to £6,000 in April from £1,971 currently, Citi’s UK economist Benjamin Nabarro said in a note that the consumer prices index of inflation will peak at 18.6% in January.

The last time inflation was higher than 18.6% was in 1976, after an oil supply shock that devastated the global economy and left the UK seeking a bailout from the International Monetary Fund. It last matched that level in 1980, according to Bloomberg figures.

Nabarro warned that “the risks remain skewed to the upside” and the Bank of England may have to raise interest rates to 6% or 7% “should signs of more embedded inflation emerge.” He added that rising unemployment was likely to limit the need for such sharp increases.

Earlier this month the BOE predicted that inflation would peak at “just over 13%” at the end of this year. Markets have been expecting rates to reach 3.5%.

Nabarro’s forecasts assumed a £300 reduction in household energy bills from cuts to green levies and VAT, as proposed by candidates in the Tory leadership battle.

Nabarro said the government is likely to go far further, with a support package for the economy of around £40 billion.

Read more:
UK Inflation to Rise Past 18% in Gas Crisis, Citigroup Says

0
FacebookTwitterGoogle +Pinterest
previous post
How Treadmill Use Can Benefit Your Health
next post
DP Trading Room: DP Indicators Called It!

You may also like

‘Everyone is affected’: Solihull reacts to Trump’s 25%...

April 4, 2025

The New Age of Commercial Real Estate: Trends...

April 4, 2025

UK inflation expected to dip below 2% for...

October 12, 2024

Wickes Ventures into Solar Panel Sector with Acquisition

March 20, 2024

Alabama’s Christopher Linton on Leadership, Community, and Empowering...

October 19, 2024

Cop28 landmark deal agreed to ‘transition away’ from...

December 13, 2023

What Should You Pack for a Vacation to...

September 27, 2024

Reeves insists government must ‘go further and faster’...

January 28, 2025

How to Choose the Best Baby Clothes for...

February 10, 2025

Private sector confidence hits lowest level since 2022...

June 2, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved