BoE Chief Economist Pill says it is good news that inflation is falling to target earlier
Importance
Level 1
- There is a risk that the BoE draw too much comfort from the dip in inflation that will come in April.
- There is also a danger of distorting underlying CPI dynamics.
- Private sector growth is subdued but positive.
- On the labour market, it does appear to have eased significantly, perhaps more than activity data would have predicted.
- Should not over-interpret the changes to the growth outlook that were stated in the February forecast from the BoE.
- Disinflation process is in tact but not complete.
- Slowing wage growth shows disinflation is under way.
- Pay growth has eased less rapidly than expected.
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