Warnings of 3% Inflation Add to Bank of England’s Headache
- Energy bills will put more unwelcome pressure on UK households
- BOE still to convince markets it’s serious about rate cuts
The BOE in November predicted a peak for this year of 2.8% in the third quarter.
Photographer: Jason Alden/BloombergThis article is for subscribers only.
The Bank of England could face a fresh battle to reassure investors of its commitment to interest rate cuts, with economists warning of inflation above 3% by the spring.
Official data on Wednesday is expected to show the consumer prices index sticking above target at 2.6% in December, the joint-highest in nine months. The BOE in November predicted a peak for this year of 2.8% in the third quarter, but price pressures have subsequently increased.