UK Inflation, January 2017 - PwC comments

Published at 10:10 AM on 17 January 2017

Consumer price inflation could rise to almost 3% by the end of 2017

Commenting on the ONS consumer price figures out today, John Hawksworth, chief economist at PwC, commented:

“Consumer price inflation jumped to 1.6% in the year to December, reflecting the feedthrough from a weaker pound following the Brexit vote and a turnaround in global commodity prices during the course of 2016.

“We expect this rise in inflation to continue, based on cost pressures building up in the supply chain and the recent renewed weakness of sterling, taking it above its 2% target by mid-2017 and close to 3% by the end of the year.

“With wage inflation expected to remain sticky, we expect this to squeeze consumer spending power over the course of this year, dragging down economic growth to below 2% in 2017.”


For further information please contact Tilly Parke: [email protected] / +44 20 7804 8761


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