Economy
Inflation May Not Come Back to Normal Levels Until 2025/2026
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What we’re showing
This graphic shows inflation & interest rate forecasts for the U.S., UK, and Eurozone (the 20 EU nations that have adopted the euro as their currency). These figures come from S&P Global, and were published in April 2024.
Key takeaways
- S&P expects inflation in the U.S., UK, and the Eurozone to remain above the 2% target until 2025 or 2026
- The first rate cuts should come in the second half of 2024, with more gradual cuts coming in subsequent years
Dataset
Inflation (%) | 2023 | 2024F | 2025F | 2026F |
---|---|---|---|---|
Eurozone | 5.5 | 2.6 | 2.1 | 1.9 |
U.S. | 4.1 | 2.8 | 2 | 2.4 |
UK | 7.3 | 3 | 2.3 | 2.1 |
Policy rate (%) | ||||
Eurozone | 4.5 | 3.4 | 2.7 | 2.7 |
U.S. | 5.3 | 4.7 | 3.3 | 2.9 |
UK | 5.3 | 4.5 | 3 | 2.8 |
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