UK Inflation, March 2017 - PwC comments
Published at 10:31 AM on 21 March 2017
Commenting on the ONS consumer price figures out today, Andrew Sentance, senior economic adviser at PwC, commented:
"It is no surprise to see inflation picking up further and going above 2 percent. This is the product of increasing global price pressures and the weakness of the pound.
"Inflation has been rising across a range of countries recently - including the United States and members of the Eurozone - as higher energy and food prices feed through to consumers. The additional upward pressure from the decline in sterling over the past 18 months will push UK inflation up further over the course of this year - to 3 percent or possibly higher.
"Higher inflation will squeeze consumer spending to some degree but if the economy remains resilient, the Bank if England MPC should be considering a rise in interest rates to counter the surge in inflation."
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