Could UK inflation fall below 2% in 2023?

It seems inevitable that inflation is going to fall rapidly in 2023, but how far will it fall?

Investment bank, Citi, have taken an optimistic position, arguing that it might drop below 2% by the end of the year, and if it does this is likely to give the Chancellor and unexpected bonus in the form of improved public finances, potentially paving the way for tax cuts prior to the 2024 General Election.

Please read: UK inflation could fall below 2% this year, Citi forecasts

Here's our essential monthly update on the UK Economy for all A level Economics students.

The Bank of England is now forecasting a shallower recession based largely on hopes that world energy prices will fall as we head into 2023. But, as always with macroeconomics, plenty of uncertainty persists.