Inflation

Every quarter, the Bank of England publishes its inflation projections and a full assessment of the prospects for UK inflation in the Inflation Report. You can read the latest Inflation Report at
https://www.bankofengland.co.uk/publications/Pages/inflationreport/default.aspx
You have been asked by the Bank of England to provide a detailed economic analysis of future price developments in the South West of England (the region comprising Bristol, Gloucestershire, Somerset, Dorset, Wiltshire, Devon and Cornwall). Your analysis will be used by the Bank’s economists in the preparation of the next Inflation Report.
In particular, you must assess whether the growth rate of prices in the South West region next year will be above or below the national average (0.0%, according to the latest inflation figure, September 2015).
You have been asked to write a report (of no more than 1,700 words) explaining your analysis and motivating your inflation forecast for the South West.
Make sure that you support the arguments in your report with evidence and/or clear reasoning, and that you demonstrate both breadth and depth of knowledge. The presentation must be informative and clear.
To conduct your analysis, you must rely on your knowledge of economics and your own judgment. You are responsible for finding the data and all the information on the South West economy, and your independent research skills will be assessed.
– PLEASE SET OUT AS REPORT WITH THE VARIABLES AS SUBHEADINGS and include graphs etc. LOOKING TO INCLUDE 5 VARIABLES.
– PLEASE USE AS MANY REFERENCES AS YOU CAN, as well as OWN KNOWLEDGE.
– PLEASE USE UWE HARVARD REFERENCING (https://www1.uwe.ac.uk/students/studysupport/studyskills/referencing/uweharvard.aspx)

Hint: A good way to start will be to read the Inflation Report and highlight all the variables that affect the growth rate of prices (e.g. domestic demand, labour costs, etc.). Then, evaluate how these variables will operate in the South West over the next year.
You may find the following ONS websites useful:
https://www.ons.gov.uk/ons/regional-statistics/region.html?region=South+West
https://www.ons.gov.uk/ons/taxonomy/index.html?nscl=Regional+Accounts
https://www.ons.gov.uk/ons/rel/regional-trends/regional-economic-indicators/index.html
You can also access regional data using the UK Data Service:
https://stats.ukdataservice.ac.uk/ (using the menu on the left, select OECD/Regional Statistics/Large regions)
The word limit does not include charts/figures and bibliography.