UK inflation about to surge
Wednesday, November 3, 2010 at 05:24PM
Simon Ward

Recent news supports the earlier forecast of a rise in CPI inflation to about 4% by early 2011, from 3.1% in September. October figures, released on 16 November, may increase to 3.3-3.4%.

The CPI profile shown in the chart below superimposes these factors on a stable underlying inflation rate of 2.25-2.5%. It suggests an average CPI rise of 3.9% in 2011, with inflation at or above the 3.1% letter-writing level throughout the year.

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