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18th Dec 2023 18:02UKDaily Monitor

  • Ofgem likely will reduce its default tariff cap by 10% in April, if wholesale prices remain at their current level.
  • Current weights imply this will reduce the all-items CPI by 0.5pp; the drag might be larger after weight updates.
  • The recent fall in oil prices has improved the CPI inflation outlook too; we expect it to average just 2.7% in 2024.

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Keywords for: 19 December 2023 UK Monitor Consumer Energy Bills to Fall by 10% in April, Driving Down Inflation

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