Blog: May 2021
CPILW rose significantly to 1.5% in April from 0.8% in March. The official CPIH measure of inflation also rose significantly to 1.6% from 1.0% the previous month. The gap between the official measure and the measure using lockdown weights has remained small but positive. This contrasts with the months prior to December 2020, when CPIH was less than CPILW, indicating that the official measure tended to understate inflation in that period. Since December 2020 the two measures have moved closely together indicating that the official measure CPIH is robust to any expenditure shifts resulting from the Pandemic.
Renato Giacon; Principal Counsellor, EU Affairs, Policy and Partnerships Vice Presidency, at the European Bank for Reconstruction and Development
Corrado Macchiarelli; Research Manager for Global Macroeconomics at NIESR
This post was originally published on the LSE blog EUROPP - European Politics and Policy
The launch of a series of insight pieces by the National Institute of Economic and Social Research (NIESR) on the contours of a new fiscal framework for the United Kingdom has important implications for investment, productivity and sustained growth – not only for the UK but also for other countries. The economic recovery from the pandemic and the transition to a net-zero economy places a gigantic demand on sound fiscal policies around the world. In addition, the UK is also committed to levelling up disadvantaged regions while retaining and potentially strengthening its global competitiveness in the post-Brexit world.