Deutsche Bank analyst Sanjay Raja indicated in a report that UK inflation is likely to rise further. The July inflation rate jumped to 2.9% from 2.6% the previous month. He said, “The Bank of England's core service indicators have all been raised, which highlights some unease about the upward trend in prices.” He also added that due to ongoing uncertainty about the situation in the Middle East, energy inflation also remains volatile. However, Raja pointed out that the food price inflation rate has fallen to its lowest level since the end of 2021, and the service price growth rate has also fallen to its lowest point in three months. However, this may only be a temporary relief. He said, “There are good reasons to believe that food prices will probably only move in one direction in 2027 — rising.”

Deutsche Bank analyst Sanjay Raja indicated in a report that UK inflation is likely to rise further. The July inflation rate jumped to 2.9% from 2.6% the previous month. He said, “The Bank of England's core service indicators have all been raised, which highlights some unease about the upward trend in prices.” He also added that due to ongoing uncertainty about the situation in the Middle East, energy inflation also remains volatile. However, Raja pointed out that the food price inflation rate has fallen to its lowest level since the end of 2021, and the service price growth rate has also fallen to its lowest point in three months. However, this may only be a temporary relief. He said, “There are good reasons to believe that food prices will probably only move in one direction in 2027 — rising.”