U.K. Inflation Set to Slow More Quickly Than Forecast: Chart

(Bloomberg) -- The consensus view sees U.K. inflation trickling back to the Bank of England’s target by the end of 2019. Bloomberg Economics takes a different view: Even accounting for the recent rally in oil prices, it expects the rate to drop faster this year as companies complete the process of passing on higher import costs to consumers. With domestic costs assumed to build slowly, inflation should drop below the BOE goal next year, before returning to 2 percent in 2020.

©2018 Bloomberg L.P.