According to the report from BBC on May 24th, Ofgem stated that the energy price cap in the UK will drop by 7% before the July election. This means that the annual energy bill for an average household in July will decrease by 122 pounds. For the whole year, the latest quarterly cap in England, Wales, and Scotland means that a household using typical gas and electricity will pay 1,568 pounds. This is a decrease compared to the current level of 1,690 pounds per year, reaching the lowest level in two years. This policy affects the gas and electricity bills of 29 million households, but it will not affect customers in Northern Ireland, where industry regulation is different but prices are also dropping. However, the bills are still far higher than before the pandemic. The continuously dropping energy prices have pushed the inflation rate to its lowest level in nearly three years. Further declines will continue to affect the inflation rate and may create more momentum for the Central Bank to lower interest rates.