How inflation in the UK could drop under 2% by April – explained in a single chart
UK Inflation Set to Dip Below 2% This Spring
Despite the UK currently experiencing the highest inflation rate among G7 countries at 3.4%, there is a strong possibility that inflation could fall below the Bank of England’s 2% target as early as April. This would mark a notable deviation from the central bank’s November projections, which anticipated inflation to average 2.9% in the second quarter. Nevertheless, our analysis suggests that inflation may briefly slip to 1.8% in April, before stabilizing around the 2% mark throughout the spring and summer months. Notably, we estimate that approximately 0.8 percentage points of the anticipated drop from December’s figure is already almost certain to occur.
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