📝 See U.K. Annual Inflation Easing to 5.0% By April: Barclays

U.K. inflation is likely to have already peaked should the government freeze household energy prices at April levels. The measure is likely to drag inflation lower starting in October, and by April price growth would be at 5%, 6.25 percentage points less than the current forecast. Inflation may also be even lower, once taking into account, a price freeze for businesses, which would contribute to limit the spillover effects to CPI. By capping energy prices, the government would also help the Bank of England, the U.K. bank says. Peaking and rapidly falling inflation, in a context of a slowing economy, would challenge calls for a faster pace of policy tightening. - Barclays