Rolling coverage of the latest economic and financial news
Deutsche Bank predict UK inflation will drop to 1.8% in September, which will be a “cyclical low”, they say.
The bad news for consumers is that Deutsche also believe “upward momentum” will likely gather pace, pushing inflation up again.
The recent run of energy deflation will likely come to an end shortly. Indeed, pump prices are likely to reverse course in October, while dual fuel bills will see a hefty 10% rise.
The upcoming Autumn Budget also raises risks to short-term inflation, with alcohol and tobacco duty increases potentially in the offing. A 10-15% net increase in VAT is also expected for private school fees come Jan-25. And lastly, an unwind of the fuel duty cut also looks likely in March/April.
