UK inflation, already at 40-year highs, could pass 13% in October, according to Bank of England forecasts. While wages have not kept pace with inflation, much of the expected squeeze on households and businesses is down to rising energy costs.
A spike in wholesale energy prices has fed into retail charges for businesses and households. While the government sets a price cap to try to protect consumers from sharp increases, it rises in line with market rates. This could cause average household bills to increase by more than £650 in January 2023 to the equivalent of £4,266 for the year.
