Inflation rose recently, more or less as predicted due to higher domestic energy prices, and the consensus among our panel of City economists is that it will rise a little further next month. After that, the RPI will remain around 3.5% until the March figures are released in April, at which point it could fall back before rebounding again the following month. The CPI’s path could be similar, though at a lower level, remaining steady at around 2.6% until March, at which point it might drop a little before climbing slowly towards 3% by September.
