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An analyst said Brexit was contributing to high energy prices across the UK.

head of macro analysis at Saxo Bank, told “The UK certainly faces as many economic problems as other European countries.

“But on top of that there are also Brexit related disruptions. This has accentuated high inflation by increasing the shortage of goods and labour.

“At the end of the day, this means a lot more inflation, which is likely to be in double digits for many months. “Inflation is also likely to be higher in the UK as government support to limit the rise in prices of the energy is lower.

“In many European countries, the real rate of change of inflation is certainly undervalued due to the capping of energy prices.

“In France, inflation will probably peak at almost 8% year-on-year. This is relatively low.

“But the government has capped energy prices this year, which means there will be no increase in gas prices and electricity prices, limiting the rise to 4% in 2022. However, it is expensive.

“To freeze prices, the UK government may have to commit almost £20 billion, as the French government has done, which will likely be reimbursed in taxes by the consumer in the long run.”


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