ANALYSTS’ VIEWS: WILL SEPTEMBER’S INFLATION HIT 5PC?

 
Tim Wallace
Follow Tim
PHILIP SHAW | INVESTEC
“September’s inflation will jump to 5.1 per cent, thanks mainly to sharp increase in gas and electricity prices. However, we are hopeful that inflation will fall back below five per cent next month and drop through three per cent in the first half of 2012.”

KEN WATTRET | BNP PARIBAS
“CPI data should show inflation rising to five per cent last month. The MPC remains confident that it will come down sharply next year. We expect their minutes to show a 9-0 vote in favour of QE2, which may pave the way for even more early next year.”

HOWARD ARCHER | IHS GLOBAL INSIGHT
“We expect CPI inflation to hit a three-year high of 4.9 per cent, though it is possible that it could have reached five per cent in September. Sharp rises in electricity and gas prices have been major contributing factors. However, this should be close to the peak – inflation will hopefully start edging down late this year and fall back in 2012.”