Annual Inflation Rate Could Hit 15% By January, Experts Warn

The UK's annual inflation could go as high as 15% by the start of 2023, experts have forecast, as further sharp increases in energy prices push up the cost of living.

- Larry Elliott

On the eve of the latest decision on interest rates by the Bank of England, the Resolution Foundation think tank said price pressures were likely to be stronger and last longer than the Bank had previously forecast.

The Bank's monetary policy committee - which said in June that it expected inflation to peak at just over 11% in October - is poised to raise official borrowing costs today for a sixth successive month despite signs that the economy is weakening.

The latest monthly health check of the service sector from the financial information firm S&P Global and the Chartered Institute of Procurement and Supply found that activity among private firms operating in the service sector had fallen to its lowest level since the coronavirus pandemic lockdown of early 2021.