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Page last updated at 13:07 GMT, Saturday, 23 January 2010

Inflation predictions

Just like weather forecasters, economists get a lot of flack when they get things wrong.

The latest inflation figures for December showed the consumer price index rose at an annual rate of 2.9%, the biggest jump since 1997.

The Retail Price Index, which includes housing costs, rose to 2.4%, the biggest monthly rise since 1979.

The rises were even higher than forecast by professional forecasters.

The programme hears an economic forecast from weather man John Kettley, and Paul Lewis speaks to former member of the Bank of England's Monetary Policy Committee, Sir Alan Budd.

This item was first broadcast on Radio 4's Money Box on Saturday, 23 January 2009

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