Join our community of smart investors

Cost of living crisis: Pledged to succeed

Millions of households are facing a one-in-a-life-time squeeze on their finances, many of whom will be forced to take extreme measures to stay afloat
August 23, 2022
  • 18mn UK households to be in fuel poverty by January 2023
  • Citi forecasts UK consumer price inflation to hit 18.6 per cent in January 2023
  • Auxilione predicts typical household energy bills to rise to £3,576 in October 2022, £5,066 in January 2023 and £6,552 in April 2023

Economists at investment bank Citi laid down the enormity of the task facing the incoming prime minister, predicting that UK consumer price inflation will hit 18.6 per cent in January 2023.

Unsurprisingly, the key component is soaring energy prices. For a typical medium-sized household, analysts at energy consultancy Auxilione estimate annual bills will exceed £5,000 in January 2023 and more than £6,500 in April 2023. In reality, the average UK domestic energy usage is far higher than the Ofgem price cap figure which is based on standard energy consumption rates (12,000 kWh for gas and 2,900 kWh for electricity).

This is subscriber only content
Start your trial to keep reading
PRINT AND DIGITAL trial

Get 12 weeks for £12
  • Essential access to the website and app
  • Magazine delivered every week
  • Investment ideas, tools and analysis
Have an account? Sign in