Energy bills set to soar to over £5,000 by spring if inflation rockets to 18.6 per cent

RISING gas prices could push inflation to a 46-year high of 18.6 per cent in January with household energy bills set to rocket to over £5,000 in the spring.

Economists at investment bank Citi said inflation was now “entering the stratosphere” as costs were increasing on everyday essentials.

Benjamin Nabarro, Citi’s chief economist, said concerns about whether households could manage the rapid inflation was “growing more deafening by the day”.

He warned that he expected household bills to hit £3,717 a year in October before rising to £4,567 in January and £5,816 in April. This would take inflation to the highest level since 1976.

Gas prices yesterday reached a record high with prices for UK gas futures up by a third to £4.80 a therm.

Russian state-owned Gazprom announced unscheduled maintenance on the Nord Stream 1 gas pipeline into Europe.

The news came as Downing Street told families not to panic about the fears of winter blackouts.

Boris Johnson’s spokeswoman insisted Britain has enough supplies to avoid 1970s-era shortages despite rocketing global demand.

She said: “Households, businesses and industry can be confident they will get the electricity and gas that they need over the winter.”