Deutsche Bank Previews U.K.'s Inflation

09:11 AM EDT, 07/10/2025 (MT Newswires) -- June inflation should come with few surprises in the United Kingdom, said Deutsche Bank.

After a pullback in headline inflation over May, the bank sees inflation rates edging a little higher in June, commencing its ascent over summer.

Deutsche Bank predicts headline consumer price index pushing to 3.48% year over year from 3.36% in May. Core CPI, the bank expects, will stay at 3.5% year over year. Services CPI is projected to move lower to 4.59% year over year, versus 4.68% in May.

For the retail price index (RPI), Deutsche Bank estimates price momentum staying broadly unchanged at 4.32% year over year.

Looking ahead, upward pressures are likely to push annual inflation higher through the year, it added. The bank sees headline CPI peaking at 3.8% year over year, before slowing through 2026.

Deutsche Bank's forecasts for this year and 2026 remain broadly unchanged, with headline CPI tracking at 3.3% year over year this year and slowing to 2.4% year over year next year.

For RPI, it sees price momentum moving from 4.1% year over year this year to 3.4% year over year in 2026. Risks, in the bank's view, are balanced.

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