<p style=““ class=“text-align-justify“>The firm says that UK inflation is expected to accelerate further in the months ahead unless the government steps in with fresh measures to lower prices, noting that:</p><p style=““ class=“text-align-justify“>“In our view, 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.“</p><p style=““ class=“text-align-justify“>They previously forecast UK inflation to peak at just below 12%, so this is a revision higher to that. Meanwhile, Citi has also revised up its expectations for BOE rate hikes, forecasting that the central bank would hike by another 125 bps to 3.00% by the end of this year – as opposed to their previous forecast of a 50 bps rate hike for the remainder of 2022.</p>

This article was written by Justin Low at www.forexlive.com.