Question to the HM Treasury:

To ask Her Majesty's Government what assessment they have made of the effect the increase in the energy price cap will have on the (1) Retail Price Index, and (2) Consumer Price Index.

In its February Monetary Policy Report (MPR), the Bank of England set out its view of the likely impact of the cap increase, using information available just prior to Ofgem’s cap announcement, and prior to the announcement of the Government support packages. The Bank’s February 2022 MPR can be found on the Bank of England website.

The Office for Budget Responsibility will update its view of the outlook for CPI and RPI inflation in its spring 2022 forecast on 23 March.

The Government recognises that many households will need support to help deal with the rising cost of energy prices. Global supply chain disruptions and higher energy prices both represent challenges that are driving higher inflation. These are global problems which we are working with our international partners on, and we are supporting households with the cost of living, providing support worth around £12bn this financial year and next alongside an announced £9.1bn package to help households with rising energy bills in 2022-23.