Energy price cap rises again - with cost of bills expected to stay high for months

Gas and electricity bills will become even more expensive in January, as the energy regulator Ofgem ups the price cap.

A typical yearly bill will be £1,738 from January, an increase of 1.2%.

It's another blow as falls in prices had originally been forecast for the new year.

It's also bad news for the prospect of inflation falling again. Costlier energy bills were a key reason inflation rose sharply to 2.3% last month.

Instead of falling steeply, annual bills are expected only to ease by £5 from April, according to analysis from the respected forecasters at Cornwall Insight.

The energy price cap sets a limit on how much companies can charge per unit of electricity. Every three months Ofgem revises the cap based on wholesale costs.

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