Summary of the editorial from IDS Pay Report 969, February 2007

Inflation forecasts for 2007 crucial to New Year pay round

Inflation, as measured by the RPI, is forecast to move above 4 per cent for the first four months of the year, averaging 4.2 per cent in the first quarter of 2007 before falling back to an average of 3.1 per cent in the last quarter of 2007. This is an increase on the last round of forecasts we published (see IDS Pay Report 962, p. 3) where inflation was projected to be an average of 4 per cent for the first three months of 2007.

... the full editorial can be read in IDS Pay Report 969