Inflation target

1. UK - Bank of England.

"To keep inflation low and stable, the Government sets us an inflation target of 2%. This helps everyone plan for the future.

If inflation is too high or it moves around a lot, it’s hard for businesses to set the right prices and for people to plan their spending.

But if inflation is too low, or negative, then some people may put off spending because they expect prices to fall. Although lower prices sounds like a good thing, if everybody reduced their spending then companies could fail and people might lose their jobs.

If we miss the inflation target by more than 1 percentage point either side of the target, we must tell the Government why."

Bank of England, June 2020

2.

Similar goals and measures in other jurisdictions.

See also

• Bank of England
• Financial stability
• Inflation
• Monetary policy
• Monetary Policy Committee
• Monetary Policy Report
• Official Bank Rate

External link

• The UK's inflation target - Bank of England