Written question asked by Lord Barnett (Labour), in the House of Lords. It was answered by Lord Sassoon (Conservative) on Monday, 7 March 2011.

Inflation

Question: To ask Her Majesty’s Government what they consider to be the near-term used by the Bank of England in section 5.1 of their February 2011 Inflation Report; and what is the markedly higher rate they were assuming in November.

Answer: The quarterly inflation reports are the Bank of England’s publications. The forecasts contained in the reports represent the Monetary Policy Committee’s best collective judgment about the most likely paths for inflation and output. The forecasts and assumptions are explained in detail in the reports, including the conditioning path for Bank rate implied by forward market interest rates. The independent Office for Budget Responsibility’s updated assessment of the outlook for inflation in the UK will be published at the Budget on 23 March 2011.

Secondary information