Philip Shaw Inflation Quotations

Last month's inflation report was about as strong an endorsement of steady rates as one is likely to see. The balance of news has turned around significantly over the past month and we now expect rates to remain on hold at 4.5% for the remainder of the year.

Last month's inflation report ... (was) about as strong an endorsement of steady rates as one is likely to see.

This underpins our view that interest rates will have to come down again although the MPC caution on inflation suggests that's not going to happen until early next year.

The fall in unemployment is a bit of a surprise. There are no signs for the time being that wage inflation is picking up although the numbers next month will be critical.

The figures are a mixed bag but what's quite striking is how low output price inflation remains despite the general background of higher input costs.