- Title: UK inflation highest since 2013
- Date: 16th May 2017
- Summary: LONDON, ENGLAND, UK (MAY 16, 2017) (REUTERS) (SOUNDBITE) (English) NICK PARSONS, GLOBAL HEAD FX STRATEGY, NAB, SAYING: "We've seen today that CPI inflation is running at 2.7 percent. That's clearly above the growth in nominal incomes. So we've actually now got that long feared real income squeeze upon us. We certainly don't share the Bank of England's optimism that it was expounding upon last Thursday when it talked about a significant pick up in wage growth over its forecast horizon. We simply don't see that pick up in wage growth. And if anything with CPI likely to turn out a bit higher than it is forecast then we see that squeeze on real incomes really dampening consumer behaviour in the U.K.â€
- Embargoed: 30th May 2017 15:38
- Keywords: BoE sterling confidence consumers economy Brexit inflation UK
- Location: LONDON, ENGLAND, UK / NOTTINGHAM, NOTTINGHAMSHIRE, UK
- City: LONDON, ENGLAND, UK / NOTTINGHAM, NOTTINGHAMSHIRE, UK
- Country: United Kingdom
- Topics: Economic Events
- Reuters ID: LVA0026H3870T
- Aspect Ratio: 16:9
- Story Text: British inflation hit its highest level since September 2013 last month, extending its sharp rise since the vote to leave the European Union and tightening the squeeze on living costs as a national election approaches.
Consumer prices rose by an annual 2.7 percent, data showed on Tuesday (May 16), and they look set to rise further due to the fall in the value of the pound and the recent rise in global oil prices.
Britain's economy was barely ruffled last year by the shock vote to leave the EU. But the steady rise in inflation since then, combined with weak wage growth, has slowed its momentum this year.
Last week, Bank of England (BoE) Governor Mark Carney warned 2017 will be challenging for consumers, with inflation now almost certain to overtake wage growth.
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