Axa IM warns inflation could reach 5%

Axa IM's Chris Iggo has warned inflation could reach 5% next year. The group's senior UK...

Axa IM’s Chris Iggo has warned inflation could reach 5% next year. The group’s senior UK analyst predicts it may peak above 5% before falling in 2009. He pointed to increased energy prices boosting UK consumer price inflation as the reason, which is likely to rise between 0.8% to 1.2% this autumn. Iggo added:” Until we see more evidence of the inflation environment improving and more signs from the MPC that it is again considering rate cuts, markets are likely to reflect economic pessimism.”