Inflation expectations unchanged - papers

The Times reports consumers expect inflation to rise to 2.4% next year, according to the Bank's key survey, matching expectations in the Bank's surveys in August and May this year. The Bank's target measure of CPI inflation - up from 1% to 1.9% since September - is expected to climb to more than 3% in January as base effects from last year's drop in oil prices and the return of VAT from 15% to 17.5% filter through. But the rise is expected to be temporary, with weak consumer demand weighing on price pressures. The Bank has forecast that inflation will be about 1.4% at the end of next ...