MPG: Research indicates inflation in Eurozone first to return to normal

MPG: Research indicates inflation in Eurozone first to return to normal

May 17, 2023

Inflation
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Research concludes that Europe is likely to see a return to pre-Ukraine war levels in Q3, the US in Q4 and UK in Q1-24.

New research from Managing Partners Group (MPG) predicts inflation in Europe is tipped to be the first to return to rates before the Russian invasion of Ukraine, in Q3 2023, ahead of inflation rates in the US and the UK.

The study for MPG was carried out among 100 wealth managers and institutional investors across Switzerland, Germany, Italy, the UK and the US, collectively responsible for £258 billion assets under management. Of these 33% expect Eurozone inflation to fall back to its rates before the Russian invasion of Ukraine in Q3 2023, while 17% expect it to take slightly longer, and not normalise until Q4 2023.

That contrasts with views on US inflation: around 30% of them don’t expect US inflation to fall back to its rates before the Russian invasion of Ukraine until Q4 2023 while 22% think this won’t happen until Q1 2024. Finally, 32% expect it to be Q1 2024 until UK inflation returns to its rates before the Russian invasion of Ukraine.

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