It’s gonna be a cold, cold Christmas
Will the cold, cold Christmas that Dana forecast in her 1975 hit arrive again this year?
Gas and electricity prices have risen sharply in the UK and elsewhere in Europe over the course of the past year on the back of a dramatic rise in natural gas prices.
This has forced the regulator to push through a sharp rise in the gas and electricity tariff price cap, which is set twice a year and affects over half of UK households.
After the recent hike, prices are up nearly 23% year-on-year. Based on current forecasts, they could increase to over 40% year-on-year at the next review in February.
Against this backdrop, it’s going to be an increasingly tough and potentially cold winter for lower income households in the UK, particularly for those that have lost the £20 Universal Credit uplift.
Source: Datastream, Ofgem and Barclays Research as of 19 November 2021. *Based on the prepayment price cap (introduced April 2017) from April 2018 – December 2019 and the Default price cap (introduced January 2019) thereafter. Forecasts from Barclays Research.
Count down to Christmas with our festive charts as we publish a new piece each day. Recognise the images that feature on our calendar windows? Each corresponds to a city where an Invesco office is based.
Related insights
Investment risks
-
The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.
Important information
-
All data is provided as at the dates shown, sourced from Invesco unless otherwise stated.
When using an external link you will be leaving the Invesco website. Any views and opinions expressed subsequently are not those of Invesco.
This document is marketing material and is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell securities.
Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals, they are subject to change without notice and are not to be construed as investment advice.
