Skip to main content

Utility hikes may mean that inflation peaks earlier

The news that British Gas today became the second utility supplier to raise its prices means that inflation is likely to rise further and faster than we previously expected. But the silver lining is that the peak in inflation may be marginally closer than it previously looked, meaning that the MPC may be in a better position to cut interest rates to support the ailing economy some time late this year.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access