Economists at Deutsche Bank predict the next set of inflation figures will reveal inflation has peaked, according to a note issued on Monday (12 December).
UK CPI figures for November are due out on Wednesday (14 December). Economists at the bank have predicted they will reveal CPI has slowed from 11.1% to 10.9%.
"If our forecasts are broadly on the mark, we have crossed the peak in inflation. And now, the next stage begins," said Sanjay Raja, senior economist in the note.
In October inflation hit the 41-year high of 11.1% as gas and electricity made the largest contribution.
Deutsche Bank said following this big jump there will be a "modest increase" in energy inflation in November, but see it slowing.
Instead, economists at the bank think services inflation will push up. "Continued strength in rents prices, catering prices, package holiday and accommodation prices will keep services inflation tracking a littler higher into year end," the note said.
Raja added wage pressure will keep service prices elevated for longer, particularly with labour disputes and pay settlements.
Deutsche Bank anticipates CPI will be over 8% year on year next year before landing around 6% in the fourth quarter.
