Dip in Rate of Inflation attributed to drop in price of electricity and gas

With gas and electricity prices dropping over the last 3-6 months, this has helped slowdown July 2023’s rate of inflation.

According to the Office for National Statistics, UK inflation rates for July have taken an unexpected dive, primarily driven by a significant drop in electricity and gas prices.

July saw the rate of inflation drop to 5.4%, marking a massive difference from the peak of 11.8% in the first period of 2023.

The UK supply chain will be massively affected by the price of energy. If the price of energy falls and businesses lock into contracts to prevent further price spikes, the cost for them to produce their goods is massively impacted and the rate inflation will drop quite quickly as a result.

It will take months, if not years for the effects to be felt through the entire supply chain but this is a really good early sign and might mean that the Bank of England won’t have to make too many more changes to interest rates.

The Consumer Prices Index (CPI) has experienced a parallel decline. Its annual inflation rate dropped to 6.8% in July, a considerable reduction from its alarming peak of 26.7% in January 2023 when the full effects of the energy price crisis were being felt.

Track the wholesale levels of electricity and gas

Business energy prices change every day based on the movement in the wholesale price of electricity and gas. As a business, it is really important that you track this to make sure you make a confident decision on your next energy contract.

You can track the latest price trends by clicking here.

Compare the market

If you are out of contract or approaching the end of a fixed term contract, it is really important that you check the current retail rate of business electricity and business gas.

You can do this completely online. All you need is your business postcode to see the latest business electricity and business gas prices for your meter.