UBS Investment Bank economists say UK inflation, after slowing in June, is
expected to accelerate and could peak at 3.3% in November. Utility bills set to
rise in July could push YoY headline inflation from June's 2.6% to as much as
2.9%. With higher input costs, particularly energy and fertilizer, passing
through, food and goods inflation is expected to intensify before year-end. A
worsening Middle East conflict increases upside risk to inflation.
