Leaders.com
  • Business
  • Leadership
  • Wealth
  • Master Classes
  • Business
    • Entrepreneurs
    • Executives
    • Marketing and Sales
    • Social Media
    • Innovation
    • Women in Business
  • Leadership
    • Personal Growth
    • Company Culture
    • Public Speaking
    • Productivity
    • Hiring
    • Social Issues
    • Leaders
  • Wealth
    • Investing
    • Cryptocurrency
    • Retirement
    • Venture Capital
    • Loans and Borrowing
    • Taxes
    • Markets
    • Real Estate
  • Master Classes
Business

The Bank of England see inflation getting even higher (photo by Mike Kemp/In Pictures via Getty Images)

By Tyler Hummel Leaders Staff

Tyler Hummel

Tyler Hummel

Tyler Hummel is a news writer for Leaders Media. He was the Fall 2021 College Fix Fellow and Health Care...

Full bio


Learn about our editorial policy

Sep 1, 2022

The U.K.’s Coming Inflation Crisis

Economists are warning that the ongoing energy crisis could send inflation skyrocketing in the U.K. 

Key details 
Goldman Sachs economists are warning that the United Kingdom could be facing 22.4% inflation rates in 2023. The estimate is tied to the increasing cost of energy in Europe, which has spiraled out of control in recent months.  

“In a scenario where gas prices remain elevated at current levels, we would expect the price cap to increase by over 80% in January… which would imply headline inflation peaking at 22.4%,” says Goldman Sachs economist Sven Jari Stehn. 

The U.K.’s inflation rate spiked to more than 9% in June following the war in Ukraine, but hasn’t decreased as the U.S. inflation rate has. 

America’s most recent recorded rate was 8.5% in July, while the U.K.’s was 10.1%. And it is expected to increase. 

A Wednesday CNBC report shows overall European inflation hitting 9.1% in August, an increase from 8.9% in July. 

Why it’s important
The inflation spike comes as British homes experienced a 145% price surge in gas prices, a coming 80% increase in energy bills, and an announcement by energy regulators that energy bill caps would increase on October 1. 

With no imminent end to the energy shortage, the U.K. economy is staring down a year of skyrocketing prices and economic pain. The Bank of England has already said a fourth-quarter recession is likely and that inflation projections have exceeded expectations. 

“U.K. peak inflation is likely to hit 14.8% in January, Goldman’s commodity strategists predicted—well above the 13.3% forecast by the Bank of England earlier this month,” says CNBC.

Backing up a bit
As we reported last week, Energy prices are spiking across Europe by over 1,000 Euro per megawatt in response to the continued effects of the Russian war in Ukraine. Volatile electricity prices are becoming worse due to the Russians threatening energy supplies. Prices have continued to skyrocket for the past seven weeks and are placing Europe in a dangerous position for the winter.

“Russia stopped gas flows through the Nord Stream 1 pipeline to the bloc on Wednesday with Gazprom starting three days of planned maintenance on the line. Russia has already been accused of weaponizing gas supplies to Europe and fueling a cost-of-living crisis in retaliation for Western sanctions due to its invasion of Ukraine,” says Yahoo Finance. 

Notable quote
“Prices in British shops rose at the highest rate since at least 2005 this month as Britons battled soaring costs on everything from gasoline to crisps. The British Retail Consortium said shop price inflation accelerated to 5.1% in August, a new record for the index which was started in 2005, and up from 4.4% in July. Food price increases hit 9.3% with milk, margarine and crisps seeing the biggest rises. This level of food inflation could continue for at least another six months,” says Bloomberg. 

Home / News / The U.K.’s Coming Inflation Crisis
Share
FacebookTweetEmailLinkedIn

Related Stories

Seattle Takes The Crown For Advanced Tech Talent

by PJ Howland Leaders Staff
Tech

Oct 24, 2023

Seattle tech talent

Seattle has emerged as the metro area with the most advanced tech talent, beating out tech hubs like San Francisco and Silicon Valley.

Key Details

  • According to a new ranking by the Burning Glass Institute, Seattle has the highest proportion of advanced tech workers compared to other cities with similarly sized tech workforces.
  • The ranking evaluated 60 million high-paying, in-demand tech job postings and histories to identify cities with cutting-edge roles like AI and cybersecurity rather than legacy tech positions.
  • With tech giants Amazon and Microsoft headquartered in Seattle, the city edged out the San Francisco Bay Area, Boston, Austin, and Raleigh on the list.
  • The report found that demand for software developers and IT support specialists has declined over the past five years as companies seek more specialized tech talent.

Go deeper

FacebookTweetEmailLinkedIn

More Americans Can’t Keep Up With Car Payments

by Colin Baker Leaders Staff
Loans and Borrowing

Oct 23, 2023

car loans, used cars

A record number of Americans are behind on their car loan payments as higher interest rates and prices weigh on consumers.

Key Details

  • According to data from Fitch Ratings, 6.11% of car loans were at least 60 days delinquent in September, the highest since tracking began in the early 2000s.
  • Some interest rates on used cars can rise to as much as 21%, according to Bankrate.
  • Soaring prices and rising interest rates are squeezing consumers, making it difficult for some to keep up with their auto loans.

Go deeper

FacebookTweetEmailLinkedIn

Chevron Makes $53 Billion Deal Amid Surging Gas Prices

by PJ Howland Leaders Staff
Markets

Oct 23, 2023

Chevron Gas Deal

Chevron is acquiring Hess Corp. for $53 billion, the second significant oil producer acquisition this month as crude prices climb.

Key Details

  • Chevron is purchasing Hess in an all-cash deal worth $53 billion, including debt and preferred stock redemption.
  • This comes just weeks after ExxonMobil announced its $59.5 billion purchase of Pioneer Natural Resources.
  • With oil over $80 per barrel, major producers are using their windfall profits to acquire smaller players and boost payouts to shareholders.
  • Chevron expects the deal to close in H1 2023 pending regulatory approvals and Hess shareholder vote.
  • Hess CEO John Hess will join Chevron's board once the acquisition is complete.

Go deeper

FacebookTweetEmailLinkedIn
nike logo
Company Culture

Oct 20, 2023

Nike to Require More In-Office Days From Employees

by Colin Baker Leaders Staff
blue collar workers
Retirement

Oct 20, 2023

Explaining The ‘C+ Grade’ Retirement Ecosystem in The United States

by PJ Howland Leaders Staff
netflix building
Entertainment

Oct 19, 2023

Netflix Hiking Prices While Adding Millions of Subscribers

by Colin Baker Leaders Staff

Recent Articles

Hiring

Nov 1, 2023

Learn the Winning Answers to the Most Common Phone Interview Questions

Come to your next phone interview fully prepared

Personal Growth

Oct 30, 2023

85 Quotes on Self-Love to Boost Your Self-Esteem

Don’t fall into the trap of harsh self-criticism

Company Culture

Oct 27, 2023

What is a Sabbatical? Your Ticket to Restful Growth and Meaning

Sabbaticals can benefits both employees and businesses

  • Business
  • Leadership
  • Wealth
Join the Leaders Community

Get exclusive tools and resources you need to grow as a leader and scale a purpose-driven business.

Subscribing indicates your consent to our Terms & Conditions and Privacy Policy

Leaders.com
  • Privacy Policy
  • About
  • Careers
  • Cookie Policy
  • Terms
  • Disclosures
  • Editorial Policy
  • Member Login

© 2025 Leaders.com - All rights reserved.

Search Leaders.com