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UK inflation could climb to 15% – Bloomberg – RT Business News

Annual inflation in the UK could climb to 15% by the start of next year as further sharp rises in energy prices drive up the cost of living, Bloomberg reported on Thursday.

Price pressures are likely to be stronger and last longer than expected unless the government develops relief measures for households struggling to pay their energy bills, the outlet wrote.

The cost of goods and services in the UK had already hit a 40-year high in September, with the consumer price index (CPI) gaining 10.1% in the 12 months to September 2022, according to data. estimates released Wednesday by the UK Office. for national statistics.

This week Britain’s new finance minister, Jeremy Hunt, announced plans to subsidize household fuel bills, but the proposed measure will only last until April, and analysts fear consumers and businesses will be still exposed to soaring gas and electricity costs.

“The key question for the 2023 inflation outlook is now about securing energy prices,” an economist at ING told Bloomberg.

In September, Prime Minister Liz Truss announced an energy price cap, which was quickly removed by the new finance minister. Experts say that without price limits, consumers will be heavily dependent on fluctuations in energy prices. Earlier, Hunt promised that “Help for the most vulnerable” would be a priority for the government in the face of high inflation.

According to the outlet, a worsening inflation outlook and no plan to tackle the cost of living crisis will affect the Bank of England’s approach to monetary policy and could force the regulator to raise prices. short-term interest rate.

However, making accurate predictions amid the current government turmoil is nearly impossible because, after Truss resigns, another reversal in the country’s economic policy will be inevitable.

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