Confident King says inflation back to 2% 'in year or two'

However, he says an economic slowdown is needed to ensure inflation is brought under control quickly. Speaking the a Treasury Committee, King says the slowing economy should bring inflation back within its target range within a year or two, but warned that external pressures could push inflation above 4%. King also forecast a period of extremely weak activity in the UK housing market as sentiment begins to change. However, his fellow Monetary Policy Committee Member, Kate Barker, says falling house prices serve a useful purpose, though they can cause short-term difficulties. “There was ...