Research Briefing | Apr 22, 2021

UK | Inflation set for a steep, but short-lived, acceleration

Why big fiscal deficits and low inflation can coexi (36)

March’s pickup in inflation will mark the beginning of a sharp rise over the next few months, as sizeable base effects combine with higher fuel and domestic energy prices. We expect the CPI rate to reach 1.5% as soon as April.

What you will learn from this report:

  • CPI inflation accelerated to 0.7% in March.
  • March is likely to mark the beginning of a steep, but short-lived, rise in inflation.
  • We expect CPI inflation to jump to 1.5% in April.
Back to Resource Hub

Related Services

Post

UK: Sterling’s woes, Kwarteng’s vows, Bailey in the middle

The negative market reaction to last week's fiscal announcements appears to be a function of doubts over the credibility of the UK government's long-term fiscal plans. Though we think the structural position is not as bad as last Friday's drop in asset prices implies, it's clear the government will struggle to retain credibility if it fails to engage with market concerns.

Find Out More
Tokyo, Japan

Post

BoJ to look through a temporary decline in monetary base

The Bank of Japan (BoJ) left monetary policy unchanged at today's (22nd Sep) meeting, maintaining current short- and long-term interest rates, despite another wave of yen weakening and upward pressures on JGB yields. 

Find Out More