Households face inflation shock next year: BoE forecasts

The Bank of England has warned that households face a sharp upturn in inflation over the next few months after tearing up its economic forecasts. The new outlook for inflation - as well as an upgrade for the wider economy - means the Bank has dropped the suggestion that it could cut interest rates to near-zero to stimulate growth. In August, forecasts unveiled by governor Mark Carney suggested a much gloomier picture for gross domestic product (GDP) in the wake of the Brexit vote.