NIESR: Head of UK Macroeconomic Forecasting reacts to the latest CPI inflation data

17 Jan 2018 11:30 AM

NIESR’s Head of UK macroeconomic forecasting, Amit Kara said: “CPI inflation eased to 3.0 per cent over the 12 month period to December from 3.1 per cent in November. We think that inflation has now peaked and will gradually drop back towards the 2% target, provided that monetary policy is set appropriately. 

Economic growth appears to have gathered momentum in the final quarter of 2017 at home and abroad and this strengthens our view that the Bank of England will raise the policy rate again in May and every six months until Bank Rate reaches 2% by mid-2021.”

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