On 16 September 2020, the Office for National Statistics (ONS) published data showing that twelve-month inflation on the Consumer Prices Index (CPI) was 0.2% in August. As required by the remit for the Bank of England’s Monetary Policy Committee (MPC) when inflation moves away from the 2% target by more than 1 percentage point in either direction, this letter – which will be published alongside the minutes of the Committee’s September meeting – addresses the following: ï‚· the reasons why inflation has moved away from the target, and the outlook for inflation; ï‚· the policy action that the MPC is taking in response; ï‚· t ... (full story)