If oil and food prices were to carry on rising, with knock-on effects on core price pressures, UK consumer price inflation could rise above 5% and remain above its 2% target until 2010 and beyond, with disastrous consequences for the real economy. But the risks to inflation are not all in the one direction.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.