Inflation could hit 22%, Goldman warns UK inflation could hit 22% next year if soaring gas prices fail to come down, Goldman Sachs has warned. Economists at the investment bank wrote in a research note: “In a scenario where gas prices remain elevated at current levels, we would expect the price cap to increase by over 80% in January (vs 19% assumed in our baseline).” They added that this would imply headline inflation peaking at 22.4%, well above their baseline forecast of 14.8%. Meanwhile, Britain will go into recession before the end of this year and the economy will keep contracting throughout 2023, Goldman has also warned. It believes that the economy will have shrunk for two consecutive quarters by the end of 2022. It has also revised previous estimates that the economy will grow by 1.1% next year, instead forecasting that it will contract by 0.6% through 2023.