UK Inflation, February 2017 - PwC comments

Published at 10:14 AM on 14 February 2017

Commenting on the ONS consumer price figures out today, Andrew Sentance, senior economic adviser at PwC, said:

"UK inflation has picked up again this month to its highest level since 2014. But the increase was less than many were expecting. The impact of rising petrol and food prices was dampened by discounts on clothing and footwear.

"The trend is clearly towards higher inflation, however, and we should expect the rate of price increases to rise above the 2% Bank of England target in the next few months. By the end of this year, inflation is likely to be around 3% and possibly even higher. Rising energy prices and the weakness of the pound are the main factors behind this expected increase.

"The continued rise in inflation will squeeze consumer spending and dampen growth in 2017 and 2018, but despite this we still expect GDP to rise by around 1.5% this year and next."

Ends.

For further information please contact Tilly Parke: tilly.parke@pwc.com / +44 20 7804 8761


Twitter
LinkedIn
Facebook
Google+

About PwC

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with more than 208,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. © 2016 PwC. All rights reserved

« UK House Price Index, February 2017 - PwC comments | Homepage | Global Information Security Workforce Study - PwC comments »

  • Contact us
  • +44 (0) 20 7213 1768

Specific and out of hours contacts