The rise in firms’ pricing power has climbed to the top of the MPC’s list of inflation worries. We think it reflects the transitory influences of previous cost increases and strong demand, rather than a fundamental shift in inflation psychology. But the Committee won’t take any chances.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services