View more on these topics

Expected inflation “anchored” to BoE target, minutes say

Expectations of long-term inflation remain reasonably well anchored to UK’s 2 per cent target, the Bank of England says, despite missing the target every calendar year since 2005.

However, the same current data suggests, that medium and short term inflation expectations are more mixed even if there are few signs they have become “significantly de-anchored”.

The Bank says it continues to debate whether “sustained above-target inflation might cause expectations of inflation to drift upwards and become ingrained in price and wage-setting behaviour”.

The annual consumer prices index inflation that the Bank targets hit 4.5 per cent for April, up from 4 per cent for March.

The Bank’s report recognises that the annual change in the CPI has often been one percentage point higher than the 2 per cent target set by the government.

The Bank has dismissed this as “temporary effects” and predicts inflation will remain elevated throughout the remainder of 2011 before falling back in 2012.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm