Inflation forecasts are wishful thinking

Those who are expecting prices to fall sharply post-Brexit may be in for a surprise, says Peter Warburton.

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The notion that grindingly slow economic growth will be accompanied by long-term stagnation in consumer prices has had a powerful grip on the bond market. Throw in the demographic and technology arguments, and the "new normal" crowd reckon that a future of low or no inflation is a slam dunk.

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Dr Peter Warburton is director of Economic Perspectives Ltd.