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.
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