BoE: Government Budget Measures Expected to Cut Inflation by 0.25 Percentage Points by Q2 2027

The Bank of England estimates that government budget measures will reduce inflation by approximately 0.25 percentage points by the second quarter of 2027. However, this impact is expected to reverse over the following year, adding roughly 0.25 percentage points back to inflation as the temporary effect fades. This suggests the budget's impact on inflation will be temporary rather than a lasting reduction in price pressures.