Think tank: British inflation will not return to target until 2028, economy is stagnating

The National Institute of Economic and Social Research (NIESR) predicts that the Bank of England will not return inflation to its 2% target until 2028 at the earliest.

The leading academic body has warned that the UK economy is coming to a standstill.

NIESR expects inflation to fall from the current 7.9% to 5.2% by the end of 2023, but the rate of decline will slow thereafter, with inflation averaging slightly above the Bank of England’s 2% target in 2025, 2026 and 2027 Target.

NIESR predicts that the UK’s economic output will not return to its pre-pandemic peak until the end of 2024, meaning zero growth for five years.

By the end of 2024, there is even a 60% chance that the UK economy will fall back into recession.