In the News
UK CPI Inflation Surges to 2.3%
21st March 2017
The jump in the annual rate of CPI inflation from 1.8% last month to 2.3% this month is a strong indication of the lagged effects of the post-Brexit depreciation of sterling. Some economists including Ed Conway at Sky are suggesting that real-time measures of inflation have prices in the UK already rising year-on-year at a rate of 3% or more. Here is some of the reaction to the steep increase in inflation.
The full CPI data can be found here on the ONS web site
UK inflation rate rises more than forecast, breaching #BOE goal https://t.co/lVMGuxXZFS pic.twitter.com/Obtlpl7e1b
— Bloomberg Economics (@economics) March 21, 2017
So, why has inflation risen so sharply? https://t.co/cCWDkMS6Bh My Economics Blog
— Kamal Ahmed (@kamalahmednews) March 21, 2017
UK inflation brings real wage growth to a standstill...again
— FT Data (@ftdata) March 21, 2017
How wages fell in the UK while the economy grew https://t.co/Eas7RbpH39 via @FT pic.twitter.com/YVdmOZGalN
Today's UK #CPI data in some perspective: steep rise in inflation over last 12 months, but only back to more "normal" levels (source: ONS) pic.twitter.com/rU9K9RbHsB
— Julian Jessop (@julianHjessop) March 21, 2017
As I reported 2 weeks ago, by some measures inflation has already overtaken wages. Brexit effect is taking hold: https://t.co/26S8DvEfly
— Ed Conway (@EdConwaySky) March 21, 2017
UK imported metal #price at record levels y-o-y after sterling depreciation & global metal price recovery https://t.co/x3NjYgbczX #inflation pic.twitter.com/yNiLll96rX
— The Freeman (@james_freeman__) March 21, 2017
Treasury responds to sharpest rise in inflation since 2012: "The government appreciates families are concerned about the cost of living."
— Kamal Ahmed (@kamalahmednews) March 21, 2017
If sustained, 2.3% inflation means not a single UK savings account stands a chance of giving you a real return this year
— Jonathan Eley (@JonathanEley) March 21, 2017
First annual rise in #foodprices since April 2014 https://t.co/ojxJtj1ogQ
— Office for National Statistics (ONS) (@ONS) March 21, 2017
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.
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