Projection that we present today is very much into parts. Im going to begin with the first part. Starting near term outlook. This chart shows the evolution of Consumer Price inflation and its components since 2018. It shows that inflation has come off the peak in october last year and that it continues to fall over the rest of this year in our near term projection. Thats the piece showed in the shade of part of the chart. This fall can be attributed in large part to a full on contribution from energy. Fuel prices have declined, electricity and gas prices have stabilised, albeit at a higher level. The Dark Orange Bars on this chart show how the contribution from Energy Prices falling and turning negatively in the coming months. Giving off gems price cap on energy and gas bills, we expect inflation to take a further step down in the july dates will be published in two weeks time. That will come down to around 7 at that point. Following a larger step down in 0ctober s data to around about
negatively in the coming months. giving off gems price cap on energy and gas bills, we expect inflation to take a further step down in the july dates will be published in two weeks time. that will come down to around 7% at that point. following a larger step down in 0ctober s data to around about 5% on that basis. this gradual will help explain the difference between current headline inflation in this country and in the europe area where wholesale energy prices feed three more directly to consumer prices. where there is more uncertainty is around the time it will take the other non energy to come down as well. price inflation forfood come down as well. price inflation for food and nonalcoholic beverages