Goldman Sachs warns that inflation in the UK could hit 22% by next year

The investment bank Goldman Sachs is forecasting that the UK could see inflation hitting 22% by 2023 if energy prices continue upward.

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In a new forecast from Goldman Sachs, the investment bank warns that the UK could see inflation rising above 22% in 2023, peaking around 22.4% and GDP dropping by 3.4%.

Currently, the cost of living in the region is skyrocketing, projections show that households may see a projected 80% rise in their energy bills in the coming months as winter is around the corner.

Since July of this year, the wholesale gas price has increased by over 145%.

“In a scenario where gas prices remain elevated at current levels, we would expect the price cap to increase by over 80% in January … which would imply headline inflation peaking at 22.4%,” Goldman Sachs wrote.

However, even if energy prices remain consistent, the UK may see inflation levels reach over 14.8% by January.

Goldman Sachs is also predicting that the UK will fall into a recession, stating “We now expect the deepened cost-of-living crisis to push the U.K. economy into recession later this year,”.

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