Most of his facts are very vague too, the average rich person? What definition is that? And they all gained in "Cash" £100k-200k during COVID. The implication that is £100,000 more that they would have normally made.
So these are the people he's concerned with. I'm sure they wouldn't be cutting their energy usage cap or not.
During covid we had fiscal policies. These give money to normal people, not the rich. I.e. furlough.
This is why we see higher prices so quickly, likewise the energy cap is fiscal as you give money directly to people.
Importantly, CPI or RPI or anything similar is not inflation, inflation is the expansion of the money supply, once you expand the money supply inflation has already occurred, the effects of which can be seen later.
CPI is to compare the effects of inflation on normal people, not inflation itself. So for example in 2009, onwards we did have inflation its just it was in asset prices due to monetary policies, not in the cost of food etc.
Regardless the current energy cap is a bad idea. The focus should be on boosting supply, not boosting demand.
Doesn’t matter if we (UK) use 0% or 100% of Russian Gas - it’s a global commodity.
If one country stops supply, then it increases demand for all of that product, because there is less of it, which pushes up prices whereever it comes from.
The question is not about if we use russian gas, simply gas.
If we stop using gas from norway, that gas would go back to EU, and, prices will lower
