Two factors are driving Britain’s faster inflation drop. The first is energy. Ofgem will update the price cap in April by looking at power futures between the middle of November 2023 and the middle of February 2024. So far, those prices have fallen, and, barring prolonged turmoil in the Red Sea, the next cap will be around 10% lower than the current level of 1,928 pounds a year for the typical household, according to Capital Economics.
