The latest quarterly inflation report from the Bank of England says inflation according to the consumer price index should move up towards the 2% target as business investment and consumer spending continue to grow.
The recently introduced 4% base rate should put inflation on a path to meet the CPI target by late this year, but both upside and downside risks are still great, the BoE warns. GDP growth in the UK continues to recover, with third quarter 2003 growth pegged at 0.9% and signs that the recovery is becoming more broadly based. Prices in the housing market continue at an unsustainable rate, however, this should moderate later in the year as people realise their disposable incomes are growing less fast. This realisation could hit household spending in general. Private sector investment ...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes