MPC minutes reveal members split on inflation expectations

UK inflation is likely to remain below target for longer, but some members of the Monetary Policy Committee (MPC) see possible risk factors that could cause it to overshoot its 2% target in the coming year.

Inflation in the UK fell to a surprise 12-year low of 1% in November, below economists' expected figure of 1.2%. In the latest MPC meeting minutes, the Bank of England said: "In the near term, CPI inflation was expected to dip below 1%, probably in the December data. "Further increases in pay growth, as labour market slack continued to decline, would be required to be consistent with the 2% inflation target in the medium term." The latest Inflation Report, issued in November, predicted inflation would fall below 1% in the next six months, but the risk of inflation remaining below t...