A Major Us Bank Predicts That British Inflation Will Hit 15% In Early 2023
Several Irish economists have predicted that consumer price inflation in the country will peak at around 10%, followed by some easing, but will remain at historically high levels through 2023, according to their predictions.
Unless there is intervention by the UK government to lower prices in the first three months of next year, UK consumer price inflation is likely to peak at an annual rate above 15% in the first three months of next year, according to economists at US bank Citigroup.
A Major Us Bank Predicts That British Inflation Will Hit 15% In Early 2023
According to official figures released earlier on Wednesday, consumer price index (CPI) inflation reached 10.1% in July, which was well above all economists’ predictions.
In a research note to clients, Citi economist Benjamin Nabarro said, “Our view is that the composition reaffirms the risk of more sustained domestic inflation, in the absence of offsetting support. We expect CPI inflation to accelerate to over 15% in Q1-23 in the absence of offsetting support.”
Earlier in the year, Citi had predicted that British inflation would peak just below 12% at the end of the year.
Last week, Irish Central Statistics Office data revealed that consumer price inflation was running at 9.1% in July, according to figures released earlier that week by the Central Statistics Office.
A number of Irish economists have predicted that the consumer price inflation rate here will peak at around 10% in the next few years and then ease a bit, but remain at historically high levels through 2023.
As part of its budget for next month, the Irish government is planning to spend at least €1bn on measures to assist households and businesses in the cost-of-living crisis.
Citigroup has also revised up its expectations for the Bank of England interest rates, predicting they will rise by 2.25 percentage points to 3% by the end of this year, compared to the previous forecast for a half percentage point rise by the end of 2022.