WIREDGOV

Reacting to the latest CPI inflation figures released yesterday but the ONS NIESR’s Head of UK macroeconomic forecasting, Amit Kara said: “CPI inflation was 2.6 per cent over the 12 month period to July, unchanged from the previous month and broadly consistent with our forecast published in the August  Economic Review.”

He added: “We expect inflation to rise further over the course of this year and to reach a peak of 3 per cent in the final quarter of 2017. Thereafter, we see inflation falling back towards the target rate of 2 per cent, but in the meantime, this elevated level of inflation will exert further downward pressure on real household disposable income, at a time when wage growth remains modest, and in turn squeeze consumer spending.”

Notes for editors:

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