Is a rise in inflation “baked in the cake”?

It’s assumed that a rise in inflation this year is “baked in the cake”, with all economists bar one (out of 33 polled by HM Treasury) forecasting a rise in inflation between now and year-end. Butwith inflation repeatedly undershooting expectations, will forecasters be proved wrong yet again? While it’s not our central forecast, we can identify a number of potential downside risks.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.