Inflation lower than expected
While it is widely expected that inflation will increase substantially in the next twelve months, today's figures released by the Office of National Statistics ( ONS) showed a small decline.
Inflation for October slipped from 1% to 0.9%, that took analysts by surprise, most of which see little in the coming economic data to keep it at current levels.
The Bank of England, who is targeted to keep inflation at the 2% level, sees the lower pound and dearer imports, contributing to a 2017 forecast of 2.7%.
Factory prices are rising and with fuel prices higher, it shouldn't be too long before the fall in the value of sterling, impacts on consumer costs in a more direct way and a steady increase in inflation is seen.
Post Date: November 15th, 2016