Inflation could hit 7% - Rathbones CIO

The stark warning comes as the year-on-year CPI inflation rate climbed 0.8% in April – a 1.9% increase over the last three months. Chillingworth says the 2% inflation target needs to be lifted if the UK is to avoid an economic slump. “It’s easy to forget that the current 2% CPI inflation target is politically motivated. With surging inflation, any possible economic rationale behind this figure looks invalid," he says, “Current targets are wholly inadequate for this new era in economic and financial markets - they are relics from the Greenspan era. “The credit crisis has given us a m...