IMF: Osborne is right on austerity plans

However, it warned UK inflation will remain above 4% for most of this year because of external factors. It said: "Inflation is likely to remain above 4% for most of 2011, but then gradually return near the 2% target as transitory factors dissipate. "Spiking commodity prices and large indirect tax hikes have temporarily boosted headline inflation. However, core inflation excluding tax effects remains around 2%." It added futures indicate a stabilisation of prices, which will help bring CPI inflation down near target by the end of next year. "Inflation is expected to return near t...