Bank of England Inflation Report, May 2004

The Bank of England published its May 2004 Inflation Report on 12 May. The report said inflation will accelerate above its 2 percent target by early 2006 and that the economy will expand quicker than it had forecast in February.

Inflation will pick up from 1.1 percent in March, the bank said in its report. Growth will peak at about 3.6 percent at the end of this year, above the 2.5 percent pace it associates with stable inflation.

``Inflation is likely to rise gradually despite the lower than

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