Inflation could hit 18.6% in January, according to analysis by Citi investment bank.
The rate is more than 5 percentage points higher than the Bank of England’s most current forecast of 13.3 per cent for October.
Analysis suggests expects the energy price cap to rise to £4,567 in January and then by a further £1,000 in April.
Citigroup expects the retail prices index (RPI) measure of inflation, which is not classified as an official statistic, but is linked to rises in rail fares, air passenger duty, mobile phone tariffs and about a quarter of UK government debt interest, to hit 21.4pc next January.
They do not expect inflation to drop below the Bank of England’s 2pc target until the middle of 2024.
These rises, they say,will see inflation ‘entering the stratosphere’.
Meanwhile one report out today suggests that the energy price cap could rise by 80 per cent in October
Cornwall Insights said in their report that The annual energy price cap will hit £3,554 following a surge in natural gas prices.
