we start here in the uk with a very rare piece of good news about the cost of living because for people in england, scotland and wales, average energy bills are set to fall by hundreds of pounds this summer. the uk energy regulator ofgem is about to release its latest price cap the maximum amount suppliers can charge the average household. because the cost of energy has fallen sharply on global markets, that cap is expected to come down from july, saving the typical household annually around £450. hannah miller has been talking to energy users in the east of england who have been struggling to pay their energy bills. since we last came to suffolk, 18 month old robyn has taken her first steps. and her mum, claire, has been trying to keep the family bills under control. we first met in august, when claire was already cutting back on her electricity use. i am terrified that, when the winter comes, we re not going to have enough for the bills. since then, energy prices hav
made a mark on the lives of many people who live here with many hoping the next few months will be brighter. dr craig lowrey is principal consultant at the energy consultants cornwall insight he s in norwich in the east of england. he s in norwich in very he s in norwich in warm welcome the programme. very warm welcome the programme. it sounds like good news, households will be better off from july. let s unpack this. it is complicated in terms of the government help that will come to an end, etc. yeah. our current forecast for the price cap injuly will be approximately £2050 per year. that is a material thought on the cap what it was, the government support of the energy price guarantee will effectively be coming to an end and overwinter households had
not coming down, a situation of stagflation, where we are seeing low growth if any at all. . ., ., ., all. the figure came down from 19.2% in march all. the figure came down from 19.296 in march 19.196 all. the figure came down from 19.296 in march 19.196 in - all. the figure came down from 19.296 in march 19.196 in april i 19.2% in march 19.1% in april for groceries. still eye watering lehi number of products still rising in price over the month. now we are being told that ultimately the lower wholesale prices will come through but they are taking much longer than expected and that is part of the concern that we have. of course, when those energy bills hit, those lower bills hit in july. hit, those lower bills hit in july, that should help relieve some of the pressure, but inflation still staying stubbornly high and so, really, i was spending power is going to be hit with a sledgehammer to be hit with a sledgehammer to stop inflation in its tracks. the bank doesn t have any other
still trailing inflation, but because of higher wages companies are then pushing those costs through into the price of the goods that they sell and the brand power of companies is still very strong, so we are still willing to part with our money and those consumer goods giants have been able to pass on the big chunks of those costs onto consumers, so all of this is having an effect and it is concerning certainly notjust consumers but companies. the prospect that actually we could see not just one interest rate rise again injune, but perhaps more towards the end of the summer. markets are now pricing in the uk interest rates possibly going up to 5.3% around that level. and when you look at where uk inflation is compared to the us, most of europe, etc, we are being described as the sick man of europe now. well, austria does sick man of europe now. well, austria does have sick man of europe now. well, austria does have a sick man of europe now. well, austria does have a higher - sic