Economists expect inflation to hit 7% this year

Inflation could reach levels not seen since the 1990s, with economists warning it could exceed 7% this year. More than half of the 32 economists polled by the Times, who include former Bank of England policymakers, said they expect consumer prices to rise by at least one percentage point from current levels. Prices rose by 5.1% in the year to the end of November, the highest rate in a decade. Over a third of the economists expect inflation to peak between 6% and 6.5%, while 15% predict it will surpass 6.5%. Two economists, including a former Bank of England rate-setter, said inflation would top 7%. Most thought that the economy would continue to recover, despite continuing supply chain disruption and the “ongoing disaster” of Brexit. A separate poll of almost 100 economists by the FT predicted that living standards would fall and the UK’s recovery would trail other developed countries. The Times (£) The FT (£)