Our panel of City economists considers that while inflation is unlikely to rise in the short term, it is likely to remain at or above 3% over the coming 18 months. The prospects for inflation are probably best summarised in the Bank of England’s recent Inflation Report, released on 10 May. It said: ‘Conditional on market interest rates, domestic inflationary pressures are projected to build over the forecast period while the contribution from energy and import prices dissipates.’
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