A continuation of the UK’s recent combination of increasing growth and falling inflation would seem too good to be true. But several factors, including a return to health in the banking sector and the slope of firms’ cost curves, suggest that rising output could continue to bring forth lower inflation.
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