Bank of England inflation predictions

The rate of inflation will stay high says Bank of England. The Bank of England's quarterly outlook shows that economy will remain weak next year. Inflation will remain high in 2011, according to the Bank of England's quarterly inflation outlook. The rise of the price of raw materials, higher energy bills and next year's VAT hike have been outlined as the reasons for the poor outlook, which predicts that the rate of inflation will stay above 2%. Governor Mervyn King said the outlook remained uncertain due to the risk of low consumer spending, mounting debt and higher taxes. However, he added that the recovery would still continue although it would heavily rely on global developments.