UK CPI reached 3.1% in March

Regular pay growth remained subdued, though oil prices rebounded. The margin of spare capacity in firms appears to be relatively limited and businesses seem to have become more confident in their ability to raise prices.

In the central projection, CPI inflation drops back, dipping a little below the 2% target before picking up to settle around the target in the medium term. The risks to growth are balanced, while those to inflation are weighted to the upside in the medium term.

Bank of England
6/18/2007 8:59:37 AM