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