L&G predicts inflation will climb again

Professor Andrew Clare, consultant financial economist at L&G, says while there are several factors such as wider retail competition and internet shopping which have helped to keep inflation rates low at around 2.5% over the last 10 years, the financial services industry should expect to see inflation rates rise over the next 10 to 20 years. Moreover, L&G suggestions of a potential increase in inflation rates were in part reinforced by the Bank of England today, as the BoE’s latest inflation report pointed out growth was higher in the last quarter than anticipated, hinting another short-...