UK inflation will be much higher than previously thought. That’s what American bank Citi predicts. Bank economists now expect a peak of 18.6 percent in January. The main reason cited for the increase is the maximum energy tariff in the UK, which rises twice a year.

Maximum fare

The maximum tariff for energy prices has increased considerably in April, to just under £2,000 for one year of energy. Citi economists expect this amount to more than double in October to just under 4,600 pounds. Next April it will rise again to more than 5,800 pounds.

Read also | Strike at UK’s biggest container port

Inflation

The US bank has the worst view of UK inflation. The peak is more than 18 percent higher than Britain’s highest inflation after the second oil crisis in 1979. Other major financial institutions such as Goldman Sachs and EY assume the highest inflation is at least 15 percent, while the Bank of England has long stated that inflation will exceed 13 percent by the end of the year. This year.

Reason

The sharp rise in energy prices is one of the reasons for high inflation in the UK. In addition, the country’s economy is suffering from the negative impact of Brexit, which means that the economy is not doing as well as in other European countries.

Read also | Social unrest in the UK due to the inflation crisis

Hit

Thousands of dockworkers at the port of Felixstowe, Britain’s largest container port, have been out of work for eight days since Sunday. Port workers want better working conditions, such as wage increases that are more difficult due to high inflation. An offer to raise wages by 8 percent was previously rejected by the Unite union. The invitation to continue negotiations was also rejected.