It seems like nothing will stop UK inflation to breach 18% at the beginning of 2023. With skyrocketing energy bills, the situation can become even worse in January, according to some experts. So, it is high time we looked up how to trade on the falling market.
CPI experts are sure that inflation in the UK will exceed 18% at the start of 2023. They predict it to reach 18.3%. At the same time, other specialists believe it can go even higher, exceeding 20% taking into account how fast it rises (last month it made 10%, which is the highest rate over the last 4 decades).
Meanwhile, the Bank of England tries to ease the situation by sharing some more positive forecasts. The officials say inflation will reach 13% in October and then decline.
In reality, there are no signs of inflation decline taking into account rapidly rising energy bills. The spike will have a negative influence not only on UK stockholders but also on businesses. Experts expect gas and electricity prices to rise by 25% and 7% respectively.
According to the latest survey, around 60% of nightclubs and pubs will have to shut down, as they can no longer cover growing energy bills. If it happens, the entire hospitality industry will suffer a crash, while the national budget will lose around 50 billion in GBP.
The further price increase will create a projection gap of £4,567, which will inevitably push inflation forward. It is very likely to reach its new peak in the near future. Domestic price settings are also likely to accelerate. However, the economy will soften at some point. So, traders should clearly realize how to invest in the post-crisis market.