To 15% – at least – Citi raises its estimate for inflation in Great Britain during the first quarter of 2023, unless there are government measures to reduce prices, as the economists of the American bank report.
As Citi’s Benjamin Nabarro emphasized in a note to clients, “absent compensatory support, we expect the CPI to exceed 15% in the first quarter of 2023.”
In its previous estimate Citi “saw” inflation climbing just below 12%.
In addition, the US bank revised upwards its estimates for Bank of England (BoE) interest rates, seeing them rise by 125 basis points by the end of 2022 to 3%. In its previous forecast it spoke of an increase of 50 basis points in the rest of 2022.
It is noted that according to the data announced on Wednesday, inflation in the UK rose more than expected in July, climbing at its highest level in 40 yearsincreasing pressure on consumers and increasing pressure for action from the government and the Bank of England.
In particular, the consumer price index increased by 10.1% in July compared to last year, after a 9.4% increase in the previous month, as announced by the country’s National Statistics Service. Economists were expecting a rate of 9.8%.