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At this stage, the BoE forecasts consumer price inflation to fall sharply during 2023. Suppose that you wanted to juxta pose the BoE's inflation forecast
At this stage, the BoE forecasts consumer price inflation to fall sharply during 2023. Suppose that you wanted to juxta pose the BoE's inflation forecast with what the markets expect in terms of future inflation. Describe what financial data you could exploit to measure expected inflation. Consider whether the measure of expected inflation thus derived would be a proxy for headline inflation or core inflation. (25 marks)
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