F&C's Lees: UK inflation will peak at 5%

F&C's head of UK equities Peter Lees expects inflation in the UK to peak at about 5% despite February's larger than expected jump.

Lees, in charge of the group's £149m UK Equity fund, says the UK is not facing a repeat of double-digit inflation witnessed in the 1970s and 1980s. He expects it to peak later this year at 5%, given the efforts of central banks around the world. "Inflation will peak at about 5% and we think like for like inflation should start to come down after July," he says. "The whole world is trying to keep inflation under control, and we are not going back to the levels of inflation seen in the 1970s." Last week consumer prices index (CPI) inflation jumped to 4.4%, hitting its highest leve...