From Reuters, August 30:
Inflation in Britain could exceed 20% early next year if spiralling gas prices fail to come down, economists from U.S. investment bank Goldman Sachs warned, adding that a recession was on the way.
Last week Britain's energy regulator said power bills will jump 80% to an average of 3,549 pounds ($4,188) a year from October, plunging millions of households into fuel poverty and leaving businesses at risk unless the government steps in.
"In a scenario where gas prices remain elevated at current levels, we would expect the price cap to increase by over 80% in January (vs 19% assumed in our baseline)," Goldman economists said in a research note.
"(This) would imply headline inflation peaking at 22.4%, well above our baseline forecast of 14.8%."....
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