Inflation will remain higher than 2% for another THREE YEARS, researchers claim  trends now

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Inflation will not fall back to the Bank of England’s 2 per cent target until the start of 2026, Goldman Sachs predicted yesterday.

Researchers at the Wall Street investment bank now expect the rate of price growth to be ‘higher for longer’, prolonging Britain’s painful cost of living squeeze.

It is a fresh blow for the Bank of England, which works on keeping inflation at around 2 per cent, and will pile further pressure on its governor Andrew Bailey.

Inflation has not been as low as that since July 2021. Since then it has spiralled into double digits before falling to a still-high 8.7 per cent last month.

Back in 2021 the Bank predicted that rising inflation would prove temporary – but Russia’s invasion of Ukraine early last year made things even worse by pushing up energy and food prices.