UK Inflation Expected to Fall Below 2% for the First Time in Over Two Years
The UK is expected to see its annual inflation rate fall below 2% for the first time since April 2021, according to data anticipated to be released next Wednesday. This decline is attributed to several factors, including falling global energy prices, the resolution of supply chain issues, and the impact of aggressive interest rate hikes.
The expected drop in inflation will put pressure on the Bank of England's monetary policy committee to consider further interest rate cuts. However, inflation is likely to rise again in the coming months due to factors such as increasing household energy prices and potential tax changes.
Inflation is expected to fall to between 1.8% and 1.9% in September.
This is the first time inflation will be below the Bank of England's 2% target in over three years.
The decline is attributed to falling energy prices, resolved supply chain issues, and interest rate hikes.
The Bank of England may consider further interest rate cuts.
Inflation is likely to rise again in the coming months due to increasing energy prices and potential tax changes.
This information is important for businesses and individuals alike, as it can impact spending decisions, investment strategies, and overall economic outlook.