UK Politics

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Eurozone inflation falls to 5.5% in sharp contrast to UK (www.theguardian.com)

submitted 1 year ago by [email protected] to c/[email protected]

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Snapshot of Eurozone inflation falls to 5.5% in sharp contrast to UK. Economists put reason for divergence down to Brexit and Britain’s energy price guarantee.

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[–] [email protected] 1 points 1 year ago

Economists said most of the reason for the divergence between the UK and the EU was down to the UK government’s energy price guarantee (EPG), which has capped the cost of gas and electricity bills to the equivalent of £2,500 a year for a typical household until July. In the eurozone there have not been similar caps fixing the price over a lengthy time period, meaning their inflation rates better reflect the recent global decline in wholesale gas and electricity prices.