Why is Inflation so Low?

Abstract

In this speech, Richard Lambert, member of the Bank's Monetary Policy Committee, discusses factors that influence the outlook for inflation. He argues that the low rate of price inflation is not just a UK phenomenon, and reflects structural factors such as globalisation, new technology, deregulation and changes in the labour market. He concludes that inflation overall remains low and stable despite swings in the prices of individual goods and services, although its likely future path is uncertain.