Base rate rises possible - Abbey

Despite a fall in Consumer Price Inflation to less than 2%, the Treasury’s inflation target, the short-term economic outlook is uncertain and season pressures could still cause inflation to rise, according to Anthony Haynes, managing director of Abbey International. “The danger from inflation is still there, as evidenced by the fact that other measures of inflation, such as the Retail Price Index, are still at high levels”, says Haynes. According to Haynes, the Bank of England’s official inflation report, scheduled for release on 14 November, will indicate how future pressures on inflatio...