In the UK the implementation of policy related to inflation is primarily the responsibility of the Bank of England’s Monetary Policy Committee (MPC). The committee expects CPI inflation to “exceed 3% for a temporary period”, while gross domestic product (GDP) growth accelerates, after which it anticipates that “growth and inflation will fall back”. and does not intend to tighten monetary policy at least until there is clear evidence that significant progress is being made in eliminating spare capacity and achieving the 2% target sustainably”. At the same time the MPC expects short-term inflation pressures, related to higher oil and other commodity prices, to dissipate. But the inflation risk could have implications for fiscal policy.

Source: The Herald July 05, 2021 03:56 UTC