london the governor of the bank of england on thursday warned inflation was likely to be a bit bumpy this year but insisted there was little reason to panic over the medium term his comments come shortly after the central bank upgraded its outlook for the uk economy the central bank now believes the uk is on track for growth of 725 this year slightly above analyst expectations and up from a previous estimate of 5 the uks comparatively quick vaccination rollout a decline in the number of covid19 cases nationwide and the gradual easing of restrictions on economic activity were cited as reasons that led the central bank to revise its 2021 growth forecast on inflation the boe said it expects the consumer prices index to temporarily climb above its 2 target toward the end of this year predominantly driven by developments in commodity prices it sees inflation returning to around 2 over the medium term we think currently the policy setting is appropriate we have got a forecast that has a very substantially strong bounce back but thereafter it comes back more into balance andrew bailey governor of the boe told cnbcs joumanna bercetche on thursday