The BCB expects inflation to remain above the 2% target until the end of 2027

On 30 July, the Central Bank benchmark forecast indicated that, as energy price shocks gradually spread to the economy as a whole, annual inflation in the United Kingdom would remain above the 2 per cent inflation target until the fourth quarter of 2027. In a more moderate scenario, the BCB expects inflation to fall below the 2 per cent target in the third quarter of next year. In a more unfavourable scenario, however, the British Central Bank model suggests that inflation may rise to over 4 per cent early next year and continue to be above 2 per cent until 2029. According to the latest British data, the annual inflation rate in the United Kingdom fell to 2.6 per cent last month, a decline that exceeded market expectations。