Capital Economics said this was still too high for the Bank of England’s liking, adding that headline CPI is likely to rise to 2.9% in November due to higher utility prices before it falls back towards 2% in mid-2025. The Bank of England cut its base rate for the first time in the cycle last month, with no change from 5% likely at this week’s monetary policy meeting. “We continue to assume the next 0.25% interest rate cut will take place in November and that rates will be cut at alternative BoE meetings until June.”