The Bank of England on Wednesday revised its inflation forecasts for the year ahead on the back of a recent indirect tax hike, but maintained price pressures remained well anchored in the medium term.
Releasing the Bank's quarterly Inflation Report, Mervyn King, the governor of the central bank, insisted the unpredictable behaviour of inflation over the past few years was linked to short-term factors, such as a hike to the rate of value-added tax (VAT), jittery energy prices, and the depreciatio
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