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Inflation likely to be well above 4% by the end of the year, says IEA expert

Julian Jessop, Economics Fellow at free market think tank the Institute of Economic Affairs, responded to ONS consumer price inflation figures for September 2021 

“The small dip in UK consumer price inflation in September, from 3.2 per cent  to 3.1 per cent, is good news and probably a relief both to the Bank of England and the Chancellor. But it does not change the big picture: there are huge price pressures in the pipeline, and inflation is still likely to be well above 4 per cent by the end of the year.

“UK food and energy price inflation at least remains low compared to the rest of Europe, as well as the US, despite fears about the impact of Brexit. This partly reflects the strengthening of the pound over the last 12 months, especially against the euro, as the UK economy has rebounded more quickly than expected. In turn, this has helped to keep a lid on import prices.”

Notes to editors

Contact: Emily Carver, Head of Media, 07715942731

IEA spokespeople are available for interview and further comment.

Consumer price inflation, UK: September 2021

Original article link: https://iea.org.uk/media/inflation-likely-to-be-well-above-4-by-the-end-of-the-year-says-iea-expert/

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