Fall in borrowing, rise in inflation, local elections looming

The recent rise in oil prices adds to our view that inflation is likely to be higher over the next couple of years than is widely expected. This only increases the chances that, eventually, the Bank of England will hike interest rates by more than the market currently expects.

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.