If inflation moves away from the target by more than 1 percentage point in either direction, the Governor is required to send an open letter to the Chancellor explaining why inflation has moved away from target and what action the Bank is taking to bring inflation back to target. (full story)

Dear Jeremy On 15 November 2023, the Office for National Statistics (ONS) published data showing that twelve-month inflation in the Consumer Prices Index (CPI) was 4.6% in October. This letter sets out the outlook for inflation and the policy action the Monetary Policy Committee (MPC) is taking to return inflation to the 2% target, along with other considerations required by the MPC’s remit when inflation moves away from the 2% target by more than 1 percentage point. We have come a long way this year. Cost pressures have eased and the restrictive stance of monetary policy is working to bring inflation down. So today, ... (full story)

Thank you for your letter of 14 December on behalf of the Monetary Policy Committee (MPC) regarding October’s Consumer Prices Index (CPI) figure. The twelve-month measure of CPI inflation was 4.6% in October, which triggered an exchange of open letters under the terms of the MPC remit. I welcome that CPI inflation has fallen 2.1 percentage points since your last letter in September, from 6.7% in August to 4.6% in October. This means the rate of CPI has now halved relative to its peak, having fallen from 11.1% in October 2022. The plan is working to bring inflation down, but we must not be complacent. As you note, ... (full story)