A report of 4 pages by Thomas Costerg and Sarah Hewin gave UK stagflation permission to create a risk of BoE (Bank of England). The reports have claimed that, the rates should not go up during the year 2011. The claims done in the reports have become a topic of discussion.

The reports discussed about how pensioners, homeowners and savers must prepare themselves for the future.

As per the BoE's figures, there has been an increase of 3.7% in the rates.

The reports have also said that if energy and food costs will be removed, then the consumer price would move to 1% and there may be a hike of 2% in the CPIY increment. This increase excludes the effect in tax changes as well. The researchers have warned that, the rise in the interest would create a big issue later. According to them, this increase would harm the market of labour.

According to the reports, it is expected that the bank rates of UK would remain unchanged till 2011. It is also expected that if the economical consolidation takes a hold the gross domestic product would slow down.