Nickell on Two Current Monetary Policy Issues

In the speech 'Two Current Monetary Policy Issues' given on 16 September Stephen Nickell of the Bank of England said in the long run, thanks to differences in computational methods and the absence of the housing depreciation and council tax elements, the HICP inflation rate is likely, on average, to be around 0.8 pp lower than the RPI(X) inflation rate. In the short run, the gap between the two rates is highly volatile.

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