UK inflation outlook good until mid-2001

A research paper of March 1998 entitled, How long before inflation rises? considered the outlook for...

A research paper of March 1998 entitled, How long before inflation rises? considered the outlook for inflation and concluded the high money growth of 1996 and 1997 posed a threat to low inflation. In the event the Bank of England maintained a tight monetary policy in the first half of 1998, while a key feature of the year as a whole was the weakness of the world economy, largely a by-product of the Asian crisis. This cut the prices of both commodities and semi-finished products in world markets, and UK inflation stayed under control. A big fall in the oil price was particularly important...