Deloitte chief economist comments on ONS inflation figures
Commenting on today’s ONS inflation figures, Debapratim De, chief economist at Deloitte UK, said:
“The energy shock has been the primary driver of higher inflation and will remain its key determinant over winter. Household energy bills will likely rise by a fifth in January, barring a sharp fall in prices in the coming weeks.
“Headline inflation is set to accelerate, peaking above 4% in spring. We expect price rises to surpass wage growth over the winter months, weakening consumer confidence and household spending power.
“Although there is limited evidence of price pressures spilling over to less-energy-sensitive goods and services, inflation is now likely to remain above the Bank of England's 2% target throughout 2027. That, alongside stronger-than-expected growth so far and early signs of an improvement in labour market data, raises the chances of a rate hike by the Bank in November.”
ENDS
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