Deutsche Bank analysts project UK headline CPI to hit 3.49% in September, signaling persistent inflationary pressures that could influence future Bank of England policy decisions and GBP valuations.
Deutsche Bank's upward revision of UK inflation forecasts, specifically projecting headline CPI to reach 3.49% and RPI to jump to 3.93% in the near term, suggests persistent inflationary pressures. These elevated figures may force the Bank of England to maintain a more hawkish monetary policy stance, potentially providing support for the GBP/USD exchange rate.
Deutsche Bank projects headline RPI to jump to 3.93% year-on-year.
Deutsche Bank projects 2027 CPI to average 3.7%, which is higher than the 3.2% average projected for 2026.
Deutsche Bank economists Sanjay Raja and Maui Brennan project UK headline CPI will climb to 3.49% in September, with core inflation reaching 2.74%. The firm anticipates a sustained upward trend in price pressures, forecasting headline RPI to jump to 3.93% in the near term and 5.2% over the longer horizon.
Deutsche Bank expects headline CPI to reach 3.49% in September, with services inflation at 3.71% and long-term RPI rising to 5.2%.