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24th Aug 2022 13:44U.K., Daily Monitor

We expect Ofgem to announce today that the default tariff cap will increase by 80% in October.

This will boost CPI inflation by 4pp, assuming the ONS treats the government's grant as a fiscal transfer.

Core goods inflation, however, is set to fall sharply this winter; manufacturers and retailers have excess stock.

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core goods cpi cpi inflation electricity energy energy prices fuel gas prices headline inflation headline rate interest payments ireland January labour labour market manufacturers manufacturing May motor fuel mpc natural gas natural gas prices northern ireland October Ofgem ONS output price inflation policy rpi surveys

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Keywords for: 26 Aug 2022 UK Monitor It's Not all Bad News on the Inflation Front

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