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Annual inflation rate forecast

Annual inflation rate forecast

Hello there,

I'm doing a forecast for the company for the next 5 years. Could you please let me know what official annual inflation rate forecast to use and where I can find it? Thank you.

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By hje
16th Oct 2015 21:19

Depends

how you define 'official'.

The Bank of England's Monetary Policy Committee presents a quarterly assessment and forecast on which it bases its interest rate decisions, if this is of use: http://www.bankofengland.co.uk/publications/Pages/inflationreport/2015/aug.aspx

 

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16th Oct 2015 21:36

For what it's worth...

...the Treasury use something called the GDP deflator (updated quarterly). Numbers and handy user guide here https://www.gov.uk/government/collections/gdp-deflators-at-market-prices... but in short, just under 2% for next 3 years, then 2.1 and 2.5 after that.

And the Treasury is never wrong, is it?

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18th Oct 2015 01:59

Can you not just use a pair of dice and a snakes and ladders board? I'm sure that's what the MPC uses. I suspect the Treasury just lick their finger and stick it up in the air to see which way the wind is blowing, but that's Whitehall for you - no imagination.

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By Tykva
19th Oct 2015 09:39

Im doing this for investors so need to use something more or less official, although I personally completely agree with you)

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19th Oct 2015 10:27

The government's target is 2%

The government's target is 2%. You could do a lot worse than to use that. 

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