Deutsche Bank strategist Sanjay Raja said UK inflation in May came in below
expectations at 2.8%, implying the Iran conflict’s shock has been smaller than
markets initially feared. He said this may give the Bank of England more time to
assess the risk of second‑round effects. Raja noted retailers have been
reluctant to pass rising energy costs through to consumers. A preliminary
US‑Iran agreement has left oil prices roughly 10% below market expectations from
a month ago, and the Ofgem‑regulated price cap could be lower rather than higher
by Oct 2026, easing pressure on households and businesses.
