UK inflation is on course to breach 18% at the start of 2023 due to skyrocketing energy bills, according to new forecasts by economists at Citi. Experts forecast that Consumer Price Index (CPI) inflation will reach 18.6% in January, which would represent the highest rate for almost half a century.
Last month, CPI inflation struck a new 40-year-high of 10.1%. The Bank of England has previously projected that inflation will peak above 13% in October before declining.
However, Citi analyst Ben Nabarro has forecast that inflation will jump to 14.8% in October as energy bills spike for UK households. He projected that inflation will accelerate following last week’s 25% rise in UK gas prices and 7% rise in UK electricity prices.
