U.K. gas prices have almost doubled this year, while power has gained almost 60% and is near a 13-year high, according to exchange and broker data. Surging global fossil fuel prices are driving up inflation for consumers, making energy tariffs not covered by the price cap more expensive, Ofgem said.
The move will put upward pressure on inflation in the U.K., which unexpectedly leaped above the Bank of England’s 2% target in the past few months. The central bank expects consumer prices to increase 4% later this year, driven mainly by the rising cost of energy, and warned on Thursday that it’s likely to tighten monetary policy to prevent those gains from sticking.
