UK inflation is expected to rise to 22% next year if natural gas prices remain elevated in the coming months, Goldman Sachs Group has warned.
Goldman economists led by Sven Jari Stehn said UK will be forced to increase its energy cap by a further 80% in January.
This would push up inflation to 22.4% and trigger a 3.4% decline in gross domestic product.
Gas prices plunged on Tuesday as tge region tries to curb its consumption and build up supplies for winter.
