MNI:Largest Canada New Home Price Dip Since `09 Led By Toronto

CANADIAN OCT FLASH RETAIL SALES +0.7%, 4TH STRAIGHT INCREASE

MNI: Canadian Oct Retail Sales Rise For Fourth Straight Month

MNI China Daily Summary: Friday, November 22

MNI: PBOC Net Drains CNY345.9 Bln via OMO Friday

MNI BRIEF: Fed Should Explore Central Clearing At SRF-Hammack

MNI: CANADIAN SEP RETAIL SALES +0.4%; SALES EX-AUTOS/PARTS +0.9%

MNI: CANADIAN SEP RETAIL SALES +0.4%; SALES EX-AUTOS/PARTS +0.9%

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

FED: Powell's Time Looks Up, Replacement Could Be Less Willing To Cut Rates?

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

UK: Ofgem price cap to rise 1.2% in Q1; broadly in line with expectations

UK
Homepagemarkets-real-timePolitical Risk BulletCEEMEABulletUKMarketsFixed Income BulletsForeign Exchange Bullets
  • Ofgem has announced that the energy price cap (which impacts the prices paid by the majority of UK consumers for gas and electricity) will rise by 1.2% for the period 1 January to 31 March to GBP1,738 per year (from GBP1,717 in Oct-Dec).
  • Note that due to base effects, gas and electricity prices are still contributing negatively to headline Y/Y CPI. This is despite that negative contribution reducing by 0.57ppt in the October print published this week as the Ofgem price cap rose 9.5% on 1 October.
  • Today's announced increase of 1.2% is smaller than the 5.1% increase seen in Q1-24. In Y/Y terms the price cap will be 9.9% less in Q1-25 than in Q1-24 (versus -6.4% less in Q4-24 than in Q4-23).
  • When looking at the impact on headline CPI, it is not exactly a one-to-one relationship with the price cap. The BOE's forecasts are probably slightly overstating the fall in Q1-25 but only by a couple of hundredths of a percentage point in headline CPI terms.
  • So overall this is broadly in line with expectations.
174 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • Ofgem has announced that the energy price cap (which impacts the prices paid by the majority of UK consumers for gas and electricity) will rise by 1.2% for the period 1 January to 31 March to GBP1,738 per year (from GBP1,717 in Oct-Dec).
  • Note that due to base effects, gas and electricity prices are still contributing negatively to headline Y/Y CPI. This is despite that negative contribution reducing by 0.57ppt in the October print published this week as the Ofgem price cap rose 9.5% on 1 October.
  • Today's announced increase of 1.2% is smaller than the 5.1% increase seen in Q1-24. In Y/Y terms the price cap will be 9.9% less in Q1-25 than in Q1-24 (versus -6.4% less in Q4-24 than in Q4-23).
  • When looking at the impact on headline CPI, it is not exactly a one-to-one relationship with the price cap. The BOE's forecasts are probably slightly overstating the fall in Q1-25 but only by a couple of hundredths of a percentage point in headline CPI terms.
  • So overall this is broadly in line with expectations.