Is there reason to be concerned about inflation and an inflationary spiral in the year ahead?
speaker1
In the year ahead.
speaker2
speaker3
Central banks have to be careful about inflation expectations adjusting higher and prices filtering into wage negotiations, making inflation more persistent.
Is that reason to take down the outlook for growth, given what you just said?
speaker1
speaker3
Yes, the energy price shock will impact headline inflation, accelerating it by about a percentage point, which means real incomes will decelerate by a percentage point.