Bank of England warn on expected jump in fuel prices

In todays inflation report by Mervyn King the Bank of England warn that general inflation will likely hit 5% and that gas and electricity prices will increase by 15% and 10% respectively later this year.

Since the UK is now a net importer of oil and gas we can only assume that hiking interest rates (seemingly their only blunt tool for combating inflation) will have no effect on energy prices.

We’ve said it many times – renewables may look expensive compared to conventional energy – today, but in five to ten years time they will look dirt cheap.

You were warned.