Following the suspension of sterling's membership of the exchange rate mechanism on 16 September 1992, the commitment to price stability has been embodied in an inflation target. The Chancellor announced a target range for inflation of 1 %-4% a year, for the twelve-month change in the RPI excluding mortgage interest payments, in October. And later that month, in his Mansion House speech, the Chancellor invited the Bank of England 'to provide a regular report on the progress being made towards the Government's inflation objective'. This is the first such Inflation Report. In accepting the invitation the Governor, in his LSE lecture of 1 1 November, said that 'our aim will be to produce a wholly objective and comprehensive analysis of inflationary trends and pressures' .
Inflation Report