UK inflation could hit 18% next year on rising energy bills, bank warnson August 22, 2022 at 1:45 pm

Rising energy prices could push UK inflation to 18% next year, according to forecasts by investment bank Citi.

Inflation – the rate at which prices rise – is currently at 10.1% and the Bank of England’s target is 2%.

It comes ahead of Friday’s energy price cap announcement on the maximum amount suppliers can charge from October.

Citi said that without any government support the price cap could hit £3,717 in October and £4,567 in January, reaching £5,816 in April.

The price cap is the maximum amount suppliers can charge customers in England, Scotland and Wales for each unit of energy.