Inflation rise will increase the risk of a double dip

14th October 2010

While Consumer Price Index inflation was stable at 3.1% in September, it is expected to rise in the coming months. 

In this webcast Simon Ward, Henderson's chief economist, considers the three main factors that could push inflation higher.

Ward says that if inflation does rise as he expects, it will have a knock-on effect on the wider economic picture.

"The net effect of these would be a tighter squeeze on consumer budgets, thereby increasing the risk of a "double dip", while also making it difficult for the MPC to launch QE2."

Leave a Reply

Your email address will not be published. Required fields are marked *