U.K. Inflation Is Approaching "Altitude", Says Deutsche Bank

BY MT Newswires | ECONOMIC | 09/11/25 11:53 AM EDT

11:53 AM EDT, 09/11/2025 (MT Newswires) -- With market attention increasingly turning towards inflation in the United Kingdom -- given the recent ascent in the consumer price index -- Deutsche Bank said it expects some retracement in services inflation as the effects of the late July index collection period wane.

This doesn't mean the U.K. has hit the peak, however -- the country is just about approaching maximum "altitude," noted the bank.

Deutsche Bank estimates August headline CPI will stay broadly unchanged, coming in at 3.79% year over year. Core CPI, the bank projects, will slow to 3.60% year over year. Services CPI, Deutsche Bank thinks, will drop to 4.69% year over year.

On RPI, the bank's models point to a 4.46% year-over-yeary print.

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Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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