INFLATION is expected to remain low and stable despite violent swings in the price of goods and services, a member of the Bank of England's rate-setting committee said yesterday.
Consumer Price Index (CPI) inflation is expected to remain close to its current level of 1.1 per cent for the rest of the year, Richard Lambert said in a speech in Glasgow.
Competition forcing down prices on the high street and the independence of the Bank of England in setting interest rates were among factors contributing to the situation, Mr Lambert said.
However, he said the likely path of inflation during the coming year was uncertain.
He said the monetary policy committee would keep an open mind in setting rates and would make its decisions according to how data and business surveys unfolded.
Mr Lambert told the Institute of Chartered Accountants that inflation in the UK this year had been surprisingly weak.
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