August inflation rates are in
Mihir Kapadia, CEO and Founder, Sun Global Investments
The weak pound at least against the Euro, weighed down by its own problems from the hazy Brexit negotiations, is causing inflationary pressures by driving up the costs of imports. In the near term, the pound is expected to add further pressure, as the Euro is threatening to reach parity with the sterling, as investors await the ECB’s decision on stimulus in October.
Inflation in the UK is expected to peak at more than 3 per cent at some point in 2017, according to the latest Bank of England forecasts, which means we may be subjected to tougher times ahead.