How did the world’s policymakers get inflation so wrong? | Business

The UK economy is in the grip of the highest bout of inflation in the developed world and it’s about to get worse. Consumer prices are expected to have risen by 9.1 per cent in the year to May, a fresh 40-year high, before peaking above 11 per cent this autumn on the back of rising energy bills.

Britain is top of the inflation league table but runaway prices are a scourge for policymakers across the world. Almost none of them saw it coming.

Just over a year ago, the Bank of England said inflation would average just above its 2 per cent target in the third quarter of this year. Last week, the Bank upgraded its inflation forecast yet again from a peak of

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