Inflation

The CBI predicts the UK economy will grow at a slightly faster rate than expected in 2010, but growth will be more ‘sluggish' than previously thought in 2011 thanks to the emergency budget.

Inflation was unchanged at 3.1% in August, according to the Office for National Statistics (ONS).

Weak growth and falling inflation mean investors should expect more quantitative easing by the end of the year, says Fidelity's asset allocation director Trevor Greetham.

A cooling global economy and an impending austerity squeeze in Britain will make the Bank of England (BoE) wait well into next year before hiking interest rates, a poll of 60 economists suggests.

Interest rates could rise substantially to 8% within two years to stave off soaring inflation, new research suggests.

UK inflation dropped marginally to 3.1% in July but remains well above the Government's 2% target.

Eurozone annual inflation hit a 20-month high in July at 1.7%, figures from Eurostat show.

The Bank of England has revised down its forecast for UK economic growth and expects inflation to remain above the 2% target until the end of next year.

The Bank of England has revised down its forecast for UK economic growth and expects inflation to remain above the 2% target until the end of next year.

A base rate of 0.5% will begin to look like the 'new normal' with hikes unlikely until 2014, according to a leading economic forecaster.