This view on inflation is at odds with the latest OECD forecasts which were of the view that inflationary pressures would ease, as long as commodity prices remained steady, thus giving scope for interest rate cuts.
The IMF report into growth prospects forecast that the UK economy would grow by 1.4% in 2008 and 1.1% in 2009, which represents a downgrade from the July forecast of 0.4% and 0.6% respectively.
The govenment forecast for growth next year remains at around 2.5%, so it will be interesting to see if these are revised downwards when considering the next budget.
