UBS expects sharp decline in inflation rate during 2023, ‎recommends shares of these sectors

The Swiss investment bank, UBS, revealed its expectations for a sharp drop in the inflation rate, next year.

The Swiss investment bank says weaker growth will be accompanied by “mechanical” indicators, such as supply chain bottlenecks and rising commodity inventories.

The US Consumer Price Index data at the end of the week showed that the annual inflation rate in the US fell to 7.7% in October, compared to 8.2% in September.

In its report on the global economy and market outlook for 2023, according to CNBC, the bank said that there are indications that the United States and other countries are clearly shifting to a more inflationary environment. Pointing to several sectors that will benefit the most,

The bank recommended paying attention to the health care sector, communications and information technology services, and reduced the energy, industry and financial sectors in an anti-inflation environment. UBS says British healthcare companies Genus and Hikma Pharmaceuticals rank high among stocks that could benefit from lower inflation in the UK.