Market conditions are very weak – business is doing poorly – and commodity prices across the world are rising. No one can be absolutely sure, but I think inflation is on its way back up.
Inflation is set to rise, based on rapidly rising fuel and food prices around the world. The Bank of England and HM Treasury can only watch the economy, they can’t drive or control it.
I expect inflation to go up. In my experience, across the world, governments want high inflation to deal with their massive debt burdens.