Summary of the editorial from IDS Pay Report 972, March 2007

Inflation forecast to rise to 4.4% then slow down later in 2007

According to our latest review of inflation forecasts, inflation as measured by the Retail Prices Index is projected to rise over the next two months to 4.4 per cent. Inflation is then expected to start falling back towards the end the year to an average of 3.2 per cent in the last quarter of 2007. However, several city analysts are forecasting the Bank of England to increase the rate of interest again in the next few months, increasing the uncertainty in the forecasts. This information is gathered from nine analysts in large city banks and economic forecast institutions.

... the full editorial can be read in IDS Pay Report 972