Rathbone's Chillingworth says inflation could hit 7% this year

UK inflation could hit 7% unless the authorities act soon, according to Rathbones CIO Julian Chilling...

UK inflation could hit 7% unless the authorities act soon, according to Rathbones CIO Julian Chillingworth. “Annualised CPI could reach 7% this year at the current run rate. Policymakers need to lift the bar on the 2% inflation target if we are to avoid an economic slump,” he said. Chillingworth believes current targets are inadequate, calling them “relics from the Greenspan era”. He said the credit crunch should encourage greater tolerance on inflation, which could help erode the overall debt burden. CPI inflation was up 0.8% in April, and 1.9% over the last three months, Chillingwort...