The estimated rate of increase in the cost of living could edge up throughout the rest of the year before peaking in early 2027, according to predictions from our panel of City economists. The main factor behind the likely increase is energy prices, already reflected in Ofgem’s announcement that the price cap on domestic energy bills will rise by 4% from October. This rise comes on top of a previous 13% increase in July and, according to Ofgem, means that bills could go up by £60 a year or £5 a month for the average household.
