UK inflation could hit 18% next year, Citi warns

2 years ago 40

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.

In an updated forecast, Cornwall Insight predicts a typical household energy bill will be £3,554 per year from October and £4,650 from January.

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.