0859 GMT - Deutsche Bank expects inflation to rise above Bank of England expectations in August. The bank sees headline CPI at 3.04%, versus the BOE's 2.83%. Further ahead, DB expects the BOE's 2% target to remain elusive largely due to higher-than-expected petrol prices. Extreme weather could also add around 0.2 percentage point to CPI in the next 18 months. The bank sees CPI peaking around 3.6% in November and again in February. It has raised its 2027 CPI forecast to 3.0%, from 2.7%. Still, core inflation is projected to have edged lower in August, while services inflation is expected to ease, analysts at DB add. Meanwhile, risks to the outlook remain balanced, with tensions in the Middle East potentially offset by disinflationary government measures, they say.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.