Citi sees UK inflation hitting 18% peak in January

(Sharecast News) - Economists at Citi raised their forecasts for the peak in UK inflation to 18% in the wake of the additional 25% rally in UK gas prices and 7% rise in electricity costs over the previous week.

The new peak, which the broker expected would be reached in January, was based on the assumption of a £300 policy offset applied to household energy bills from next October through to 2023, Dow Jones Newswires reported.

Against that backdrop, the key news during the current week was likely to be Ofgem's announcement of the price for October, Citi added.

Its economists also predicted that the typical dual tariff would increase to £3,717, versus the base price of £1,285 for the current calendar year.