Economists at Deutsche Bank have predicted that UK inflation could drop to the Bank of England’s 2% target this spring.
In a research note this morning, Deutsche Bank predicts UK CPI inflation will average 2.5% year-on-year in 2024, down from a previous forecast of 2.7%.
Headline inflation will drop “a little below 2% in April and May”, they predict, before hovering around 2-2.5% for the remainder of the year.
Deutsche’s chief UK economist, Sanjay Raja, said: "Core CPI, we think will slow to just under 4% y-o-y, with services inflation tracking just above 5% y-o-y. RPI, we think, will drop to 3.5% y-o-y on the year."