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Mar 13 2014

What Lies Ahead for U.K. Inflation?

In its latest release, U.K. inflation dropped below the Bank of England’s 2% target for the first time in four years. Many hope that low inflation might allow real wages to rebound, as during the past few years of high inflation, stagnant wage growth meant a decline in living standards for many. Is this optimism well-founded?

ECRI’s latest analysis juxtaposes ECRI’s U.K. Future Inflation Gauge with measures of commodity prices, input prices and consumer prices to definitively answer whether U.K. inflation will continue its retreat.

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ECRI February 8, 2014

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