Bank of England central forecast shows annual inflation remaining above the 2%
target until Q4 2027 as the energy-price shock passes through the economy. In a
milder scenario the Bank expects inflation to fall below 2% by Q3 next year; in
an adverse scenario its model projects inflation could rise above 4% in early
next year and remain above 2% through 2029. Latest UK data showed annual
Inflation fell to 2.6% last month, a larger decline than expected.
