Back in early February I was foolish enough to remark to a colleague that on the economic front things were looking more settled, and of course that was a good thing. We seemed to be in more stable times. I was expecting inflation to return to its 2.0% target in around April or May, and then we would need to assess what level of interest rate would keep it there. Well, that jinxed it. Shortly afterwards, the Middle East conflict broke out. Since then, energy prices have gone up and then returned to levels a bit above where they were before it started, although we are now seeing renewed volatility. Inflation hasn’t ... (full story)